If you need homeowners or renters insurance, consider Lemonade. And no, I don’t mean the tasty citrus drink; I mean Lemonade Insurance Company, a casualty and property insurance company that is changing the way insurance is done. From embracing new technologies to making charity part of their business model, Lemonade is perhaps one of the most groundbreaking insurance companies out there.
How It’s Different
Most insurance companies work by charging a premium, and then paying claims that are covered by your policy. All of the premiums paid are pooled together and used to cover claims and pay expenses. Because of this model, insurance companies make more money when they pay less claims; therefore, a lot of paperwork and processing is usually involved. In essence, you have to fight your own insurance company to get money for a claim.
Lemonade is different because when you pay your premiums, they only keep a flat fee. So no matter if you make lots of claims or none, the amount of profit they’re making stays the same. This keeps you and your insurance company on the same team, and also makes processing claims very easy. Any “leftover” money is given to charity at the end of the year, during what is known as their annual Giveback.
Since Lemonade keeps a set amount of your premium, you may be wondering what happens to the rest of the money you pay. Like other insurance companies, premiums are pooled together to help cover the claims of those who are insured. However, at the end of the year, if there is left over money in this pool, Lemonade gives that money to a charity that their clients choose! Although there is no guarantee how much money will be left to giveback, during Lemonade’s first year in business, they ended up donating $53,174 to 14 different charities. So by choosing Lemonade Insurance, not only are you getting insured, but you’re also helping to give back to the community.
This unique business model, with a focus on giving back, has earned Lemonade Insurance Company a certified B-Corp status. B-Corps are companies that, even though they’re for-profit, have a focus on solving environmental and social problems. As of this writing, there are only 20 certified B-Corp insurance companies. Since insurance is all about peace of mind and protection, it makes sense that an insurance company would want to help make the world a better place!
Lemonade uses cutting-edge technology to make the insurance process easier, faster, and more reliable. You can get Lemonade Insurance either on their website or as an app (iOS or Android). If you’re interested in seeing how the Lemonade app works, you can watch a demo here. This video explains the registration process and the claims process, both of which are super simple and require zero paperwork! Lemonade even has an artificial intelligence, dubbed “Maya,” to help find the best insurance policy for you. By using technology to make insurance fast, reliable, and accessible, Lemonade has revolutionized insurance.
On their website, Lemonade states that it takes ninety seconds to get insured, and just three minutes to get paid after a claim. However, in 2016, they paid an insurance claim in just three seconds! That’s right; just three seconds after one Lemonade customer submitted a claim, Lemonade had already approved it. As there was no official record for the fastest claim ever paid, Lemonade took the title and said that three seconds was the time to beat.
Just how is Lemonade able to pay claims so fast? It goes back to that flat fee that they take from premiums. Since their profit is the same no matter the amount of claims they pay, there’s no reason for them to slow down or reject claims. And by using artificial intelligence and other technology to check and double check policies, claims are able to be processed almost instantly.
As if they didn’t already offer enough unique products, Lemonade also has a “Zero Everything” policy. With Zero Everything, you can claim losses that otherwise, you may not have even considered, such as stolen shoes or clothing. And you don’t even have to worry about rate hikes or deductibles! Lemonade calls it “the freedom of claiming even the lowest cost stuff.” According to their website, you can make up to two Zero Everything claims per year. Zero Everything is only available in California, Texas, Nevada and Ohio, but will hopefully be available in more areas soon.
Interested in getting Lemonade insurance? In New York, California, New Jersey, and Nevada they offer renters, condo and homeowners insurance. They also offer renters and condo insurance in Texas and Rhode Island, and just renters insurance in Illinois and Ohio. However, they have plans to include additional states and offer condo and homeowners insurance in more states very soon. If you’d like to be one of the first to know when Lemonade is available in your state, you can sign up to receive notifications on their website.
Lemonade is a great option for those trying to save some money, with prices starting at just $5 a month for renters insurance and $25 a month for homeowner’s insurance. Those living with you who are related by blood, marriage or adoption are also covered at no additional cost. (Roommates are not covered and will need to get their own insurance policy, although who knows – they might want Lemonade Insurance too!) And if you’d like to switch to Lemonade Insurance Company but aren’t sure how to begin, don’t worry! They can take care of helping you switch. Lemonade Insurance really wants to make insurance as easy as it can be.
There are a multitude of reasons to choose Lemonade Insurance, from their super fast and easy claim process, to their dedication to charity. If you need insurance and don’t know where to begin, start your search with Lemonade.