Why Lemonade, the home insurance company, is a Lemon for actual coverage.

I've been seeing FB ads in my feed about this InsureTech company Lemonade. I won't get into the specifics of why they(the founders of Lemonade) think their company is different from other insurance companies. Honestly, they aren't that different if you take away the hype.

This video briefly describes why you, as the consumer, should be aware of the pitfalls of picking your own insurance coverage or letting a slick app make the choices for you.

Why Lemonade in Arizona is a lemon for most home insurance consumers.

1) The price is not terribly competitive. In my test, they actually priced higher and I'm not with the lowest priced home insurance company.

2) The quoting platform shows lowest coverages only and doesn't automatically include Dwelling Replacement Cost Guarantee for your structure. If you don't know any better you could leave yourself with a huge gap in coverage.

3) Policy limitations and exclusions. The big one right off the bat is an exclusion for swimming pools in Arizona. Since a high percentage of home have pools in Arizona, this will be a huge gap in coverage.

4) The cost to schedule jewelry and other valuables is about 50% higher than other insurance company's.

If you need basic coverage then Lemonade might be an option, if you care about coverage then likely there are much better options available in the marketplace and at a competitive price.

Insurance is one place where "self-checkout" should be avoided.

Call an independent Insurance Agent such as our agency for expert advice, choices, and competitive pricing for your home and auto insurance needs.