The news: Lemonade has been steadily expanding its renters insurance offering across the US, with Delaware, Louisiana, South Carolina, New Hampshire, and West Virginia among the latest states. This brings its renters insurance to 37 states plus Washington, D.C.

Zoom in: Coverage starts at $5 per month, which Lemonade says is about 30% cheaper than the average US renters policy. The product runs entirely through Lemonade's app, including a 90-second onboarding process, per the insurer. 

Why this matters: Renters insurance shopping rose in Q4 2025, while switching fell to 3.8%, down nearly a point year-over-year, per the latest Loyalty Indicator & Shopping Trends report from J.D. Power, conducted in collaboration with TransUnion. And according to EMARKETER’s forecast, renters insurance policyholders will grow from 23.2 million in 2024 to 26.1 million by 2028—though penetration will plateau starting in 2026.

Elevated homeownership costs and cost-of-living pressures have forced more consumers to rent, but affordability also caps how many can take on insurance. Lemonade’s low entry price can appeal to renters who see insurance as out of reach. 

J.D. Power also notes that rate hikes erode trust most when insurers don’t clearly explain them. Lemonade's transparent pricing and instant claims handling are core to its product and harder for incumbents to replicate quickly. 

Implications for insurers: Renters insurance is becoming a long-tenure product: according to TransUnion, 53% of US renters are over 40, with delayed homeownership extending renting into a longer life stage. Property insurers can no longer count on customers graduating into homeowners coverage on the old timeline. Combined with lower switching rates, that makes acquiring renters before they buy their first policy a key growth lever.

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