COMPANY PROFILE

Lemonade: homeowners insurance profile

Lemonade sells homeowners insurance almost entirely through software: its 2025 Form 10-K, filed February 25, 2026, says its chatbot AI Maya and its APIs sell 98 percent of its policies, and its claims bot AI Jim takes the first notice of loss 96 percent of the time without a person involved. This profile sets out what that annual report says about how Lemonade sells, handles claims for and reinsures homeowners policies, next to the coverage it lists on its website. It does not rate or recommend the company.

Company facts, as the company states them

Where Lemonade sells homeowners insurance

At December 31, 2025 Lemonade was licensed to sell renters, homeowners, pet or car insurance in all 50 states and Washington, D.C., but actually operated in 41 of those states and D.C. Being licensed in your state does not mean every product is offered there, so check availability at your address. In the United States its homeowners and renters policies cover stolen or damaged property and personal liability, and in some states it offers landlord policies to condo and co-op owners who rent out their unit fewer than five times a year. Outside the U.S. it sells in France, the Netherlands, the UK and Germany.

The company stresses in the filing that U.S. homeowners policies are mostly sold through agents, which makes its end-to-end digital model an outlier. It does not generally sell through traditional brokers.

Automated claims

As of December 31, 2025, roughly 55 percent of Lemonade's claims were automated from start to finish, according to the 10-K. AI Jim passes claims it is not authorized to settle, or where it sees concerns, to human adjusters, choosing among them by specialty, workload and schedule. For a homeowner this means a simple claim can be settled quickly in the app, while larger or disputed property losses still go to a person, so it is worth keeping photos, receipts and the claim chat history the same way you would with any insurer.

The Giveback and how Lemonade describes its incentives

After buying a policy, customers pick a charitable cause category. Each year Lemonade decides an annual Giveback from its financial performance and customers' chosen causes, and aims to donate quarterly. The 10-K says the Giveback is paid only if the board authorizes it, that it can be modified or eliminated, and that a regulator could treat it as a rebate rather than a charitable contribution. Lemonade presents it as a way to reduce the incentive to deny legitimate claims and to discourage fraud; it is not a premium refund owed to you.

Wildfire costs and reinsurance

The January 2025 California wildfires added $19.6 million to Lemonade's net incurred losses. As a member of the California FAIR Plan it also paid a $6.9 million assessment in early 2025 and later received approval to recoup up to 50 percent of it over two years starting in 2026, through supplemental fees. Lemonade relies heavily on reinsurance: its whole-account quota share program for July 1, 2024 to June 30, 2025, with Hannover Re, MAPFRE Re and Swiss Re, covered all products, and a separate quota share contract with its Cayman Islands captive, Lemonade Re, was renewed on July 1, 2025 at a 35 percent cession rate. The filing warns that if reinsurance became unavailable at current levels, its ability to write new business could be limited.

Lemonade questions