The Most Important Things to Know About Lemonade’s Renters Insurance
Lemonade is a growing insurance company that is doing things a little differently. Besides their legendary Giveback program, they lay all their cards on the table so you know exactly what to expect. Here’s a short breakdown of the most important things to know about Lemonade’s renters insurance.
1. How to lower your premium
Everyone’s premium is different depending on factors like where you live, history of making claims, and chosen deductible. If you want to lower your premium, these three are typically hard to change.
However, you can lower your premium by:
- Investing in protective devices
- Bundling with other policies
- Only cover what you need
- Pay annual premium
Your premium can be lowered if you show Lemonade you’re actively trying to avoid burglary or theft from happening in your home. Protect your belongings by getting burglar alarms, smoke detectors, and deadbolts.
Like other insurance companies, Lemonade offers premiums at a discounted rate when you bundle. Bundling means you are purchasing more than one policy from the same provider.
Lemonade has many policies available to protect your property and your family (including the furry ones).
When you pick your policy (or policies), you’ll decide what you want to cover. The more items you elect to cover, the higher your premium will be.
But don’t worry, if you ever realize you need to change the number of items covered, you can anytime through the Lemonade app.
Another way you can save is by paying your premium annually instead of monthly. Unfortunately, this only applies in some states. Your policy will specify if paying annually could help you lower your premium.
2. Extra Coverage
Extra Coverage is one of the greatest perks Lemonade has. You can get Extra Coverage on special items like jewelry, art, cameras, bicycles, and musical instruments.
Getting Extra Coverage means not having to pay a deductible when you make a claim. Unlike the base plan, you’re covered if your item is accidentally damaged or gets lost.
For example, the base plan protects up to $1,500 of jewelry, so if you have more expensive jewelry, you should add them to your policy with Extra Coverage. This can save you tons of money in the event that your diamond earring falls in the ocean.
If you want to add items for Extra Coverage, all you need to do is:
- Take a photo of the item
- Write a short description
- Include a receipt or appraisal of the item
Each item needs to be “scheduled” or added individually so Lemonade’s team can determine if they can cover your item. It’s worth noting that Lemonade is growing and will be able to cover more special items in the future, so stay tuned and check out their Twitter for more updates.
3. What is NOT covered with base plan or with Extra Coverage
Lemonade will protect their customers as much as possible, but they can’t help with everything. Before signing up, it’s important to learn what will never be covered under your policy even if you get Extra Coverage.
Lemonade is not able to cover the cost of a lost or stolen pet under any policy. Also, if your pet has a history of biting or is considered by Lemonade to be an aggressive breed, Lemonade will not cover expenses if your dog bites someone.
Lemonade will not cover an illegal item or if an item is destroyed due to your partaking in illegal activity. Assault weapons are not covered under any policy.
Your policy will cover your family (adopted or blood) and spouses. Roommates are NOT covered and should get their separate policy with Lemonade.
It’s also worth noting that Lemonade doesn’t cover cash or cryptocurrency and can’t help in the case of heat or power loss.
In the case of bedbug infestations, Lemonade does not offer coverage because your landlord is legally required to pay for the expenses of removing the bed bugs.
4. What to do if your property gets stolen
Lemonade can help you if your personal property is stolen as long as the item is covered by your policy. As soon as you realize your belongings have been stolen, find your local police department and file a report.
Know that when you file a claim using the Lemonade app, you’ll be asked to provide the officer’s name, precinct or department number, and report number. You’ll also be asked to record a video of yourself explaining what happened.
Lemonade’s AI, Maya, will then either approve your claim or pass it along to Lemonade’s dedicated team for further review.
Once your item has been approved and you’ve filled out your banking information, Lemonade will deposit the value of the item minus your deductible.
Lemonade determines the value of your item based on its most recent value on the market. If the item is no longer sold, Lemonade will use a similar item for reference. If you have Extra Coverage on an expensive item, you should keep track of receipts so Lemonade can pay for its full value. Specifically, Lemonade suggests keeping track of items that were more than $250.
Main takeaways
Now that you know the most important information about Lemonade’s renters insurance, you can decide if it’s right for you. If you are curious to see what your premium might be, check out Lemonade’s website. Once you’re there you can determine the price of your premium by answering a few questions prompted by AI Maya.
It’s important to educate yourself on the conditions of your policy before you sign-up. Being informed helps you save money on your premium and prepares you when the time comes to make a claim. Knowing all of your options is key to finding the right plan for you.
