A home’s insurance coverage can act as a financial safety net for what may be the single most expensive purchase of a person’s life: your home. Suitable coverage should help protect you from the costs of rebuilding after a fire, replacing stolen belongings, restoring your home after a storm, or defending against liability claims if someone is harmed on your property.
Too often, however, barriers such as overly complicated legalese, decision fatigue, and unclear eligibility requirements discourage many homeowners. Finding an affordable, comprehensive home insurance that’s the best fit for you is daunting. With all the features to compare, benefits to consider, nuances to decipher, and fine print to read, you may ask, “What’s the best place to start?”
Fortunately, technology-enabled insurance startups have revolutionized the sector by integrating Artificial Intelligence (AI) and data analytics to provide a better home insurance shopping experience to help you find coverage at a lower cost.
Our two favorite online home insurance providers are Hippo and Lemonade. In this article, we’ll compare the two modern insurance sites built to help you select the best policy for your specific needs. We’ll highlight these two companies’ available coverage options, discounts, overall customer satisfaction, and financial strength as measures, so you know where to start when it comes to choosing the best home insurance for your new property.
But first: why shop for home insurance online?
Getting home insurance gives a homeowner peace of mind about their hefty investment. Getting one has never been more important, not only because it’s usually a must when getting a mortgage, but also the escalating unpredictability of weather and flooding. , Despite this, many people shy away from the process — and for a good reason. Here are the top five reasons why people put off getting home insurance:
- Excruciating process of paper filing and reporting value of home, personal property.
- Lengthy time of finding the right fit at an affordable price.
- Lack of clear and simple language of coverage, deductible, and filing claims.
- Difficulty of getting and comparing quotes across different insurances.
- Fear of not being worth the time or money due to anecdotes of barriers in filing claims.
Online home insurance providers fill these gaps brilliantly with customer-friendly bonuses and a slew of discounts. They provide on-the-go convenience by giving quotes in minutes. While doing so, they provide options from which you can customize your coverage based on your needs and budget. Based on their own distinct business model, they provide a one-of-a-kind consumer experience. Convenient features such as a time-saving one-stop user interface, no paperwork, and an innovative digital experience are standard among many online insurance companies.
Insurtech companies are the up-and-coming tech-savvy trailblazers, transforming the modern insurance landscape. Here we take a deep dive into two of the leading insurtech companies in the home insurance sector — Hippo vs Lemonade.
Hippo vs Lemonade: Where should you buy home insurance?
Before we go head-to-head, let’s start with an overview of each of these two providers.
A quick review of Hippo’s home insurance
Hippo is as hip as its name implies. It promises some disruptive advances in the insurance sector in terms of efficiency, convenience, and transparency. Hippo has geared its processes to provide a more virtual digital experience while retaining the choice of hotlines. This eliminates the need for in-person office visits and paperwork. And being streamlined in its processes, Hippo has made receiving a quote, purchasing a policy, and filing a claim as simple as possible.
It offers rival house insurance companies a run for their money by stocking its policy with perks and features without surcharges. Amused? Let’s have a look at what makes Hippo appealing.
Hippo provides amazing selections for you to choose from at an affordable price. It allows you to personalize coverage protection and alter it as needed. For this, Hippo offers three plans: essentials, best value, and expanded protection. The whole set of features required for industry-standard house insurance is included.
Hippo also offers incredible savings, making it even more enticing. Discounts for installed products such as professional, smart monitoring home systems, interior sprinkler systems, early-bird purchase of insurance policy following a quote, storm shutters, fire extinguishers, and so on are included.
A quick review of Lemonade’s home insurance
Lemonade provides several insurance products, including home insurance, renters insurance, term life insurance policies, and even pet insurance. Speaking of, if you’re looking for pet insurance alternatives, check out Eusoh.
Lemonade compensates for its limited geographic reach (currently 27 states) with an innovative business model. It distinguishes itself not only via its exceptionally inexpensive pricing but also through its Give-back business approach. It deducts a flat rate from premiums to cover company costs, leaving the remainder for claim payments and charitable donations of your choice.
Hippo vs Lemonade: Which is better?
Lemonade vs Hippo: What’s the best online home insurance?
|One place user-interface||Website||Website or mobile app|
|Industrial standard coverage|
– other structure coverage
– fences and other buildings
– fences and other buildings
|Process of application and filing||Easy||Extremely easy|
|Types of home insurance||Homeowners|
|Add-ons coverage options||Home-based business|
|Special perks offered||Smart home monitoring system||Bundle other insurance in one place: Term Life, Pet, Car|
|Underwriters||✔ Spinnaker Insurance |
✔ Canopius U.S Insurance
|✔ XL Catlin|
✔ Lloyds of London
|A.M Best Rating||A-||None|
|Availability of customer support||24/7 website and phone||24/7 website and app|
|Availability||37 states||29 states|
Germany, France, and The Netherlands
Hippo vs Lemonade: Which offers the best homeowner experience?
Hippo vs Lemonade: Buying Home Insurance Online
|Simple application process|
|Responsive customer care team|
|Transparency of coverage|
|Zero deductible(to replace stolen valuables)|
|24/7 Hotline number|
|Face to face interaction||❌||❌|
|Will cancel your old insurance and escrow||❌|
An in-depth review of Hippo
What kind of home insurance coverage does Hippo offer?
Every homeowner should be assured that they are receiving enough coverage at an affordable price. Hippo provides coverage for residential homes and condos. It includes the conventional house insurance coverages of property, dwellings, medical, and related liabilities.
But there’s more to it. In the coverage, Hippo provides excellent perks. It goes above and beyond by offering the following, all at no extra cost:
- Concerned about equipment breakdown? Hippo provides liability coverage of up to $100,000 to repair or replace appliances such as the dishwasher or washing machine in the case of an electrical or mechanical breakdown. A rare occurrence in many home insurers. This means that pricey equipment is no longer a source of anxiety.
- If you incur higher-than-expected replacement costs, Hippo has your back! If repair costs exceed the known value (due to depreciation of home property), Hippo will pay up to 50% of the excess. Most other insurers charge extra for this coverage.
- If you have a home office, Hippo insurance provides up to $10,000 in coverage for computers and other office equipment.
- If you ever need to repair damage to your power, water, or sewer lines, Hippo covers that as well, with no additional expenses. On that note, any water damage is covered up to $20,000 in coverage. This is if it is caused by water back up from drains and not floods.
What is Hippo’s customer service like?
It is vital to consider whether a company provides hassle-free customer service. Customer assistance at Hippo is available online or by phone 24 hours a day, seven days a week. Hippo is easy to contact if you have any queries or responsibility claims.
What home insurance discounts does Hippo offer?
Although its rates are already competitive, Hippo house insurance provides several discounts that are typical with other homeowners insurance companies and those less frequent. We’ve highlighted the most prominent Hippo homeowners insurance savings below.
- Smart home discount: Hippo not only provides free smart home monitoring systems to qualified policyholders, but the company also gives a premium savings of up to 15% for activating the system.
- Early signing discount: You’ll get a discount if you sign up at least eight days before your coverage starts.
- New home discount: You can save up to 30% simply by purchasing an insurance for a new house.
- No-mortgage discount: You’ll get a discount on your coverage if you own your home outright.
- HOA discount: You can get a discount on your home insurance coverage if you pay monthly assessments to a homeowner’s association.
Is it safe to purchase home insurance from Hippo?
It is vital to consider the insurance company’s reliability and financial strength. It can be used to assess the company’s ability to meet its financial obligations.
Hippo has a few underwriters, but its assets are valued at $200 billion, providing them outstanding financial stability. Hippo uses Canopius U.S Insurance, which is well-regarded by raters, for any additional surplus business.
Trustworthiness is invaluable, especially when dealing with high-value items such as a home. Everyone desires the peace of mind that comes with having a home insurance company that delivers on its promises. Hippo stands out in terms of reliability.
How much does Hippo’s home insurance cost?
When compared to regular home insurance companies, Hippo claims that consumers can save up to 25%. This is most likely due to cheaper operating costs, as clients can acquire a quote and apply for a policy completely online.
Hippo has been reported to quote $835 annually, or $69.58 per month, for a tailored annual premium quote on home insurance coverage for a 30-year-old first-time homebuyer.
According to Bankrate, the national average cost of homeowners insurance is $1,312 per year. However, various specific characteristics, such as the age and condition of your property, your location, and your credit-based insurance score, influence your rate. Your insurance rate will also be affected by the policy limits and endorsements you select.
An in-depth review of Lemonade home insurance
What kind of coverage does Lemonade offer?
Lemonade’s coverage isn’t lacking either; in fact, it offers more broad coverage options than Hippo. It provides insurance for homeowners, renters, condos, and co-ops. And despite its extremely low rates, it gives the complete industry-standard coverage for home insurance:
- Dwelling coverage – renovate or get another home property
- Other structures coverage – fences and other buildings not immediately attached to the home
- Personal property coverage – any personal belongings
- Liability insurance – legal defense for covered events, injury to people at the property, accidental damages to property
- Expenses after a home loss – food, hotel accommodation, and other living expenses
- Medical Expenses to others – help covering the cost of medical bills following a liability case
You can purchase an endorsement or eExtra Coverage for valuable items that you want to be individually insured against theft, loss, and damage. Thus you can customize the coverage you acquire for these different situations, generally paying slightly more as you increase the amount of assets you’d like covered. You can also change your deductible, which is the amount you must pay toward claims before Lemonade starts paying out. Lemonade’s system is extremely flexible, which is great for shoppers with unique situations who otherwise feel shoehorned into one-size-fits-all coverage options.
Does Lemonade have good customer service?
Lemonade home insurance centers your interactions on its website and mobile app, allowing you to sign up online as opposed to other insurers that provide a network of agents you can call or visit in person. It’s even possible to cancel your coverage online — welcome to the modern age, ya’ll!
By taking information and a video through the app, Lemonade drastically minimizes paperwork. Claims can be filed and paid in a matter of minutes. The app allows you quick access to all your policy details, and also allows you to adjust or change it, obtain a new policy or additional coverage, and generate quotes. However, if you can’t access the app or prefer to chat through your options, they also offer a 24/7 hotline. Overall, Lemonade offers strong customer support, both for new customers weighing their options as well as for homeowners looking to adjust their plan, or — God forbid — making a claim.
What discount does Lemonade offer on home insurance?
Lemonade helps you save by comparing options programmatically and offering you a low-cost option best suited to your needs. It also provides a few basic house insurance discounts, most of which are standard across the industry.
- Material discount: If your home is constructed of fire-resistant materials, such as masonry, you will be eligible for a discount.
- Protection equipment discount: If you have safety equipment installed, such as fire and burglar alarms, you can get a discount on your house insurance.
- Gated community: If you live in a gated community, you can get a reduced cost.
- Bundling policies: Buying more than one type of policy with Lemonade, such as home insurance and pet insurance.
- Annual billing discount: for paying the entire annual cost in an one lump sum
Lemonade is also a socially conscious corporation
Lemonade’s business is highly socially conscious.
Lemonade imposes a flat price on premiums so that its revenues remain constant even if you need to make a claim. Because of this methodology, Lemonade has a solid reputation for not impeding insurance claims, and thus can deliver a seamless customer experience in the event of something catastrophic.
In fact, all funds remaining after claims and other costs have been paid goes to charity. Lemonade has raised almost $2 million in donations as of 2021 — not standard for any company, much less an insurance broker.
Is it safe to buy home insurance from Lemonade?
Homeowners should not be concerned about Lemonade despite them being a relatively new player in the business. The company is public (LMND) on the NYSE and is financially secure enough to be able to pay insurance claims even in the worst case scenario. While Lemonade insurance is not rated by AM Best Rating Services, a prominent insurance rating agency, it does earn an “A” from Demotech, which examines the financial viability of regional and specialty insurers. Thus, according to industry experts, Lemonade has an “excellent” ability to pay its claims.
Lemonade also reinforces its financial stability by reinsuring with XLCatlin and Lloyds of London. These are some of the largest reinsurers in the industry, which should provide extra peace of mind for anyone hesitant to buy a policy online via lemonade.
How much does Lemonade’s home insurance cost?
Lemonade prides itself on offering affordable rates, with homeowners coverage starting as low as $25 a month.
Lemonade is reported to charge approximately $165.75 for a sample coverage on a $450,000 property in the Chicago suburbs. That is just one example, and it is subject to fluctuation depending on a variety of conditions, but it should give you an idea of how much Lemonade’s home insurance costs.
To purchase a Lemonade homeowners insurance coverage, you must apply using the Lemonade website or mobile app. Prepare your address, number of rooms, approximate square footage, and the age of your home before applying.
Before you begin the process, consider how much coverage you want and how high of a deductible you’re willing to pay. Consider what optional add-on coverages you require, such as additional personal property coverage for your jewelry.
What other insurance does Lemonade cover?
Lemonade’s Term Life Insurance provides term life insurance coverage for as little as $9 per month. There are no medical tests required, and coverage can be purchased in as little as five minutes. Lemonade sells policies with term lengths ranging from five to thirty years and a death payout of up to $1.5 million. If you’re interested, we recently published a deep dive on the best online life insurance startups, including popular brands like Bestow, Ethos, and Ladder, as well as a review of Dayforward.
Pet health insurance
Lemonade’s pet health insurance policy will cover any furry buddies for as little as $10 per month. If the animal becomes ill or is involved in a covered accident, the pet’s health insurance coverage will pay for tests, treatments, and medication, possibly saving thousands of dollars in medical expenditures.
If you rent, Lemonade’s renter’s insurance can provide financial protection for your items. Renters coverage starts as low as $5 a month.
Online reviews: What are customers saying about Hippo vs Lemonade?
Hippo home insurance reviews
There is no better way to gauge the legitimacy of a product or service than through industry experts and real end-user feedback. On the industry expert side, Hippo has excellent financial ratings from A.M. Best for meeting its financial responsibilities. Hippo’s customers also provide overwhelmingly excellent feedback, praising the company’s easy-to-reach customer service, rapid response time when making claims, and amazing rates on home insurance. Here are a few comments from happy customers:
Lemonade home insurance reviews
Lemonade policyholders also praise this home insurance service, with many customers applauding their flawless digital experience in particular.
The verdict: What’s the best site to buy home insurance, Hippo or Lemonade?
Buying a new home will be one of the most expensive and crucial decisions you will make in your life, and having the proper level of coverage will offer you the peace of mind you need to carry on with your life worry-free.
While it’s impossible for any of us to predict the future. The best you can do is plan for the worst-case scenario, including getting some good insurance from these insurtechs that stand out in the house insurance industry.
So, who can you put your house insurance plans in the hands of? To summarize:
Hippo insurance is a great alternative for your house insurance requirements. It combines inexpensive rates with excellent coverage, which is uncommon among many home insurance providers. Although Hippo does not provide face-to-face customer service, its crew is available via phone 24 hours a day, seven days a week. If you’re used to handling your home’s insurance online or over the phone, Hippo is one of the best options.
Reviewing a homeowners policy can be a chore, but working with a tech-savvy insurance provider like Lemonade can make the process quick and straightforward. Lemonade has made buying policies and paying insurance claims a breeze by utilizing AI and chatbots. The hassle-free experience also involves sending your house insurance quote to your lender, so you don’t have to deal with the never-ending back-and-forth. It also offers other additional insurance plans, like Life Insurance, all in one place.
Because none of these two companies is available in every US state, you may find that your location limits your options. Hippo is available in more states than Lemonade, so if you reside in a place where Lemonade is not available, Hippo is your best bet. And, if you have the option, Hippo is a wonderful choice if you want a low-cost house insurance coverage that covers a wide range of difficulties. Lemonade may be the ideal option for you to consolidate all of your insurance in one place and save money.
Have you given these online insurance marketplaces a chance? Tell us about your experience in the comments section below.