Lemonade canceling home policy due to weather related catastrophes in Dallas

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bobertmcmahon@reddit

That company is shit, FYI, you should switch to a more legitimate insurance company.

You can look at their reviews online, they are an even bigger nightmare than older insurance companies.

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BecauseBatman01@reddit

Idk they were good to us when we had an apartment. It was cheap and filing a claim was super simple and easy.

I wouldn’t use them for a house but for an apartment coverage they worked great.

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pobox01983@reddit

I use it for my apartment. They are good (no experience of filing claim with them but a colleague did report theft which they covered) . Would never use for a house.

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shauneky9@reddit

I second this even as a renter for a house - good experience even with prolonged extended stay in a hotel while repairs were being done

Can’t speak on the homeowner side

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masta@reddit

I'd guess any apartment claim is cheaper that any home claim.

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sharknado523@reddit

It was cheap and filing a claim was super simple and easy.

It was a cheap and easy way to satisfy the minimum legal requirement for insurance but had you actually needed to use that coverage it would have been a huge pain in the ass

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zekesaltspider@reddit

How much do they pay you to shill on Reddit? Are you even a real person or a bot?

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BecauseBatman01@reddit

lol not a shill at all bruh.

Just sharing my experience when filing a claim during the ice storm couple years ago.

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autopilot6236@reddit

I had the same positive experience with a flooded unit. Paid my full claim amount, no questions. I was honestly surprised there was no pushback.

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envision83@reddit

Just because you had a shitty experience with a company doesn’t mean everyone else has as well, asshole.

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Yarusenai@reddit

People are allowed to have good experiences with a company lol

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acorneyes@reddit

yeah my apartment flooded in the 2021 storm, instantly accepted my claim and covered everything i said was damaged

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TheSpivack@reddit

And insurance company that calls itself Lemonade isn't trustworthy? Color me surprised 😯

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djwurm@reddit (OP)

who do you suggest for our area to look into?

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OneWoodSparrow@reddit

For homeowners/renters, have you checked with whoever carries your car insurance? Rates are generally what they are, and bundling it with auto can bring both down.

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Geico bundles with Homesite. It's fine. I tried working with a broker about 6months ago, and she couldn't find anything worth switching to. The one time I had a problem, they were fine too. I had wind damage, and the total came in under my deductible since everything's at 2% now.

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Hozay_La15@reddit

Homesite is way worse than Lemonade. Coming from an insurance broker.

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OneWoodSparrow@reddit

Ok, I don't know what that means.

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duchess_of_nothing@reddit

You've never heard of Geico Insurance?

The commercials with the lizard that has a British accent?

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YaGetSkeeted0n@reddit

I thought he was more Australian or new Zealand

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OneWoodSparrow@reddit

I am aware of the company. I don not know WTF it means that someone 'has gieco' when I asked if they have discussed bundling home owners with auto.

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djwurm@reddit (OP)

ok let me elaborate.. I have Geico for auto and have not discussed with them yet on bundling

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OneWoodSparrow@reddit

Ok. So...do that?

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djwurm@reddit (OP)

dude.. again I just got the email from Lemonade.. I will look into it but haven't had time. my policy isn't. up till June so I have time.

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OneWoodSparrow@reddit

I mean, why not just say that?

Responding with a cryptic 'I have X' when I suggest asking your current company about bundling implies they don't do it and are famous for not doing it.

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Jackitos@reddit

Perhaps you should?

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djwurm@reddit (OP)

I will.. I just got this email today so haven't had time yet

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Davidwalsh1976@reddit

Pretty sure geico doesn’t have their own home owners insurance but they partner with someone else. You should still be eligible for bundle discounts.

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csonnich@reddit

I don't know where you are in Dallas, but I have home and car with Kathy Wall State Farm on Lovers Ln, and I liked her so much I didn't change brokers when I moved to a different area.

She was featured in one of their TV ads years ago about a claim from a car driving into someone's living room. Always been reasonable and able to easily explain what covers what and why I might or might not want to get that coverage. Never felt like they were upselling.

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all2neat@reddit

I’d quote the usual suspects for insurance.

State Farm Allstate AAA Liberty Mutual USAA (if you qualify)

Progressive and Geico partner with a third party.

Shop for a HO policy but odds are it will be cheaper to bundle. I’d also not put much stock into complaints. These are large companies and there will be horror stories with all of them. I’d put more stock into people not liking a local agent as you’ll have to deal with them on occasion.

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Ichgebibble@reddit

I’ve been using AllState for close to 30 years for home and car insurance and they’ve been amazing. Coverage is great and they have never argued over claims. I can’t say enough good things about them.

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Organic-Astronaut559@reddit

As a young person straight out of college, living in uptown with nothing really of value, my $6 insurance with lemonade was great when my apartment required it. For renters, it might not be bad. For home owners, well, a different story. I now live in New York City and pay for renters insurance through lemonade for $18 a month, way cheaper than anything else I could have found.

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lifegoeson5322@reddit

I'm out of the loop, I've never even heard of them before. Well, now that I've heard of them, I will promptly forget that since they suck.

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Patient_Ad_2357@reddit

They arent AM best rated. My landlord sent out a mass email saying they WILL NOT accept this company or anyone that isn’t AM best rated moving forward following last years winter storm where pipes burst and flooded the halls/ some units. Lemonade didnt want to pay out shit to the tenants for their belongings. It was a shit show.

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djwurm@reddit (OP)

I got this email yesterday and really surprised that they are canceling due to weather=related catastrophes in our area. I dont understand and will be calling them but I assume it will just be them saying our underwriters are saying we cant insure you..

What weather related events would cause this in Dallas? we dont get hurricanes, massive flooding, snow storms are rare.. If they are canceling Dallas which is probably on the low end of weather catastrophes then they would be canceling for the whole US..

Anyone else have any advice on how to find the best new policy? Any luck using a broker?

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fuelvolts@reddit

Hail. Unscrupulous and predatory roofing contractors, along with roofing materials manufacturers that intentionally lack innovation for weather-resistant materials for profit, have screwed us all over.

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Snobolski@reddit

roofing materials manufacturers that intentionally lack innovation for weather-resistant materials

Pretty much any roofer will offer you Class 3 or Class 4 shingles from the brands they use. They don't cost that much more than standard 30 year shingles. Our last house the cost diff paid for itself in reduced premiums in a few years.

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fuelvolts@reddit

We should be putting metal roofs on houses here in Texas. Sure, it costs 2-3x more, but they last 50 years. Like, actually 50 years.

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Snobolski@reddit

Gagree

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fuelvolts@reddit

Hello, fellow P1.

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CreatureOfTheFull@reddit

Want metal dent?

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valiantdistraction@reddit

Hail damage, tornado damage, and damage from burst pipes from freezing and houses not built to withstand it. We actually get quite a lot of weather damage.

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davwad2@reddit

Wind damage.

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Typical_Texpat@reddit

Google “independent insurance agent near me” and see which one you want to reach out to. Make sure they’re not a captive agent (can only sell Allstate, State Farm, etc) and have them shop for you. Their commission comes from the insurance company. Wind/hail is a big concern in DFW so be prepared for a 1% or 2% wind hail deductible.

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entropicitis@reddit

If you just look at the likelihood of events, hail costs Insurance companies more money than those other more "catastrophic" events.

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djwurm@reddit (OP)

ugh.. never had a roof claim.. just one claim for a pipe that burst in our shower a year ago.

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NTXGBR@reddit

Pipe bursts and water claims of any kind are number two on the list. Lemonade is not as bad as some people are making it here, but they don't have the robust book of business that some bigger insurance companies have, so they have to get out of markets faster. Honestly, I'm surprised after the great purge of companies we saw in 2021 that they ever even came back, but every so often some rube comes up with his great idea for an insurance company that doesn't have the stability it needs to operate here and comes in all starry-eyed.

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SamHenryCliff@reddit

All your points are valid and good info to share - the industry is pretty simple numbers and how companies exist in the space is as you described.

I am so very glad to be out of the “re-insurance” business where companies like Willis (not my firm but a competitor) go and divvy up the book of business to offshore investors through various markets…it was…I’m glad I’m out for my ethics basically.

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NTXGBR@reddit

Yeah I feel that. I sort of feel at times like I stay with it just to help people who don't deal with it every day and see what sort of craziness happens in the backend or what all factors into their rates. It too often looks like I'm defending every carrier's shady dealings, but in reality its like: These are the facts, their justifiable, and here is the best way to make the best of that situation.

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entropicitis@reddit

It's not personal. It's just math. Insuring in Dallas is costing them more than they are making.

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Nice_Category@reddit

DFW is actually an area of the country with the most natural hazards. High straight line winds, heavy rains, heavy hail, tornadoes, wildfires, and earthquakes are all disasters that insurance companies have to cover.

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adannel@reddit

Hail damage on roofs.

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johnnypark1978@reddit

Lemonade is renters insurance. Why would a renter have to make a claim for hail damage. The owner's insurance would cover structures. Them canceling policies in DFW doesn't really make much sense.

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Some_Ad_9560@reddit

this is correct

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Appropriate_Ad_7022@reddit

Tornados, straight line wind events & hail are the main perils they’re concerned about. There is some evidence that each of those are adding to costs via increased frequency/severity, clustering of events & general inflation. In addition, reinsurers are demanding very heavy rate increases due to the increase in these events across the region, so it’s possible that this insurer can’t buy the same cover & isn’t able to carry the risk themselves.

I wouldn’t say Dallas is anywhere near becoming uninsurable like parts of Florida & California, but the added costs might have just punched through this particular insurer’s risk appetite. I’m sure there are other providers still willing to write that business, but you have to be prepared for annual increases when those factors are continually deteriorating.

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Forward-Shower-3250@reddit

This is bad news because less competition means higher prices.

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SugoiHubs@reddit

Good, now you can switch to a real insurance company

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djwurm@reddit (OP)

any suggestions on who to go with or is there a site I can compare multiple quotes across companies?

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Anxious-Economist-53@reddit

Don’t use Statefarm or Allstate.

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djwurm@reddit (OP)

who would you recommend to call?

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Anxious-Economist-53@reddit

There’s a service called Goosehead who will give you multiple quote from multiple people. Usaa is good but you have to be a vet or have family who is. Travelers, farmers, farm bureau.

If you live in an area that’s prone to hail storms, I’d steer clear of ACV policies. They may be cheaper but if you have a claim for your roof later on you won’t be able to collect depriciation. So youll be out of pocket for your deductible plus depreciation.

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Skinny_Phoenix@reddit

Goosehead is just an insurance agency. Any independent agent can get you multiple quotes. I use a Goosehead agent but there's nothing unique about them, relative to other agents.

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ThatSandwich@reddit

Go to the USAA sub and you'll see a bunch of people complaining.

The issue exists with ALL insurers right now. They are employing business practices that harm the consumer and result in higher profits and less risk.

Best bet is actually reading your policy and making sure that if shit hits the fan you're willing to get a lawyer to enforce the wordage of that contract.

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scorched03@reddit

Not these companies

https://www.trialguides.com/blogs/news/aaj-lists-10-worst-insurance-companies-in-america-cites-trial-guides-books-and-authors-for-uncovering-insurance-bad-faith-practices

I also have lemonade. There used to be a dite that ranked best and worst bad faith insurers for auto and home

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athanasia_@reddit

I wish they would update and republish this list. It’s over 20 years old now, and some of these companies have worsened while others have shaped up.

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scorched03@reddit

https://www.myinjuryattorney.com/the-10-worst-insurance-companies/ alot of same ones or same source?

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athanasia_@reddit

Alas, same source!

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FaxxMaxxer@reddit

Texas Farm Bureau.

They’re a little more expensive, but they are rated the best when it comes to paying out claims. You’ll also have a real human agent who you can call directly, no waiting on hold to speak to someone in a foreign call center.

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Patient_Ad_2357@reddit

Texas farm bureau and travelers were very easy for auto claims (i was not at fault for either) but very quick turn around

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kevntao@reddit

Interestingly we've had Allstate for years and never had issues with claims or anything, multiple roof replacements, and reasonable rate increases. due time to shop around again though.

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SugoiHubs@reddit

USAA is great if you have any direct family member who served. My grandpa was in the Navy and it meant that I could get a policy.

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athanasia_@reddit

I’ve had good luck getting reasonable rates with Farmers. Amica is great but usually pretty expensive for DFW.

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YaGetSkeeted0n@reddit

I got a quote from Amica recently and was shocked by how expensive it was. Supposedly they’re fantastic to deal with when you do need to deal with them, but sheesh… the agent did say I might be able to get a better rate once I’m an established home owner with some time under my belt having home insurance.

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athanasia_@reddit

From experience, they're so great to deal with when you have a claim. I was sad to drop them, but their rates for DFW are just out of control.

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YaGetSkeeted0n@reddit

Any experience filing claims with either Travelers or Farmers around here? They seem to be my top options. State Farm also in the running if I get a good discount for an impact resistant roof.

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vegetabledisco@reddit

I don’t understand the hate in this thread for Lemonade. They’ve insured my home for five years and the one time I had a claim it was super easy to file and get funding. They even lowered my rates last summer when I was renewing. Albeit it was only a few hundred less, but still, I’ll take what I can get.

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Fluffy-Imagination51@reddit

My apartment completely flooded in 2023 (busted pipe upstairs) and they fucked me sooo hard. I got maybe a 5th of what I should’ve gotten.

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Own_Sky9933@reddit

Same I had a hail claim about a year ago. Was straightforward getting it’s resolved.

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KC513@reddit

They’re non renewing not cancelling, there’s a difference

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jkconno@reddit

The real catastrophe is predatory roofing companies getting entire roofs replaced by insurance companies when the roof integrity is not compromised whatsoever

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mclmawee@reddit

My apartment no longer accepts Lemonade and we have to change when we renew. My renewal is in August and now I’m worried I might have to find something earlier.

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hgilbert2020@reddit

What i’m about to say doesn’t just apply to this home insurance company— but a vast majority of them here in Texas.

I really don’t think most people realize how much money gets paid out a year by home insurance for roofing claims. If they did they should not be shocked at all to see how fast home insurance is rising and why carriers are pulling out.

“Frivolous claims”— i’m talking about predatory roofers are WIPING OUT insurance providers.

Y’all know what i’m talking about. Hail storm comes in and all of a sudden your mailbox gets hit with the advertisements to get your roof looked at and then fixed, file a claim, yada-yada.

For background, my father has been practicing law here in Dallas since 1982. He worked at and eventually became a partner at a large law firm that did a ton of insurance defense work.

He pivoted to mediation in the mid-90s and has now mediated more than 25K different lawsuits. In short— he deals with insurance companies every day.

My Dad bought the house i was raised in (and he still lives in) back in 1995. The roof has been redone ONCE (literally last year).

These roofers, i know it isn’t all of them, are going to cause the same thing that happened to Floridians and all the claims roofers “convinced” homeowners in Florida to file.

In short, you do not need to file a claim whenever there is hail damage. If you had a competent roofer and the proper shingles you will be fine unless something catastrophic happens (like a tree falling and damaging the integrity of your roof).

To reiterate, my folks house was built in Preston Hollow in the early 1960s. It has had TWO, roofs. And guess what? The house never had any leaks, no water damage, nothing.

Then i hear about people getting their roof redone for the fourth time on a home built in 2000 north of LBJ and i want to scream lol.

I highly doubt the state legislature will do anything because they will argue it would “hurt jobs or small businesses” but we can quite literally look at what the roofing industry did to contribute to home insurance prices in Florida the past 20 years.

Lastly, it ain’t all roofers fault. Climate change is a huge factor in how our storms are getting worse.

But we can make a law limiting frivolous shit by some bad actors in an industry (and several others) if we actually wanted to.

We can’t out legislate the climate.

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BrokenToken95@reddit

Legit yesterday tried to restart my policy by passing and it was saying I couldn’t. Now I know why smmfh

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deleted_by_reddit@reddit

[removed]

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Dallas-ModTeam@reddit

Your post has been removed because it is a violation of Rule #5: Violence

Violations of this rule may result in a ban. Please review the /r/Dallas rules on the sidebar before commenting or posting.

Send a message the moderators if you have any questions. Thanks!

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bepeacock@reddit

oh shit now i’m nervous to get this email. live in frisco…

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all2neat@reddit

They’ll send it closer to your renewal. My suggestion is to shop around before they send it so you know what to expect.

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bepeacock@reddit

i emailed my goose head agent. said he set a reminder to check a month from renewal.

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tcastr@reddit

Same! Checking my email now 👀

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MHJ03@reddit

TIL there is an insurance company named “Lemonade”

How stupid is that!?

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Positive_Guarantee58@reddit

Renewal denied and canceling policy is totally different lmao… Anyways the company milked the shiit out of you lol

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Holls867@reddit

Insurance companies are assholes anyway.

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Intelligent_West7128@reddit

A lot of insurance companies are getting out of insuring TX homes. I know someone that found out in the nick of time before her insurance expired. The insurance company didn’t send notice of cancellation until the last minute because they wanted that last payment. Before that she just so happened to call the insurance to ask an unrelated question and that’s when she found out. If that didn’t happen she would’ve lost coverage and it would’ve been very difficult to get coverage after going a time period without it.

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Dizzy-Bat4776@reddit

Unfortunately, several insurance companies are pulling out of the area, or just out of Texas entirely. If they stay, they are raising deductibles to 3-5%.

In one small neighborhood, they could easily get 30 roof claims, which would wipe out their books. Roof claim payouts are 3x what a person pays for their home’s annual premium, at least, so it would take many years for a company to recover from those kinds of losses.

Progressive, Travelers, Allstate, State Farm, USAA - these are the major carriers I am seeing that keep semi-decent rates, but watch those sneaky deductibles. Good luck!

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YaGetSkeeted0n@reddit

I’ve gotten some decent quotes for a house I’m under contract for with Farmers and Travelers. State Farm and Allstate were pretty pricey for the same coverage.

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hearmeout29@reddit

This is easier said than done. I'm stuck with Travelers after trying every major carrier and none wanting to insure my roof without proof of when it was redone. My roof is 16 years old. AAA didn't even quote me because they require documentation of roof replacement.

Other carriers have switched to ACV on the roof after a certain time. I pay over 4200 a year and have over a 6k deductible for wind/hail and all other perils 3k. I had to bump my other structures down to 3k to save money. We are moving out of state soon because the rising insurance along with the ridiculous property taxes are too much for what you are actually getting here.

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The-Purple-Church@reddit

I must have missed the weather related ‘catastrophes’ that have been happening here.

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mzfnk4@reddit

Hail and wind. Anytime a decent storm passes through, thousands of homes can get hit.

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The-Purple-Church@reddit

Normal weather events don’t really seem like a catastrophe unless the unstated catastrophe is the insurance companies have to dust off their check printers to honor their contracts.

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YaGetSkeeted0n@reddit

I think it’s more that for Lemonade’s particular business model, the juice ain’t worth the squeeze. They could raise rates to cover it, but they may figure that they won’t be able to get enough customers with higher rates.

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JEXJJ@reddit

Tech bros don't know how to offer real products.

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_notsoagreeable_@reddit

Have you had your roof inspected from those wild storms we've had over the last year? If they are already canceling you, You should make sure you don't have any hail damage. My company does roof inspections absolutely free and in a lot of circumstances we get homeowners brand new roofs with no money out of pocket. I'm Juana btw

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illustrious_d@reddit

When life gives you lemons, lemonade tells you to go fuck yourself.

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djwurm@reddit (OP)

haha have an upvote

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DiveMasterD57@reddit

We’ve been with Farmers for years and they did right by us when our home was flooded during the ice storm three years ago. Feel free to DM me for a referral. Happy to share our agent - she’s awesome!

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djwurm@reddit (OP)

I sent DM! thanks for offering

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Agile_Definition_415@reddit

My building stopped accepting lemonade this year.

Not that I had it anyways, it's got terrible reviews. Yeah it's the cheapest but they'll spend every cent you gave them fighting your claim.

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WaffleHouseFancy@reddit

I recently switched from Farmers to Allstate, was able to save in that I avoided my homeowners premium going up by ~$1k. Car insurance was definitely a decent savings, but I did up my deductible. Insurance rates are such a racket and one of many reasons why I’m constantly scratching my head at people claiming Dallas is an affordable place to live.

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Own_Sky9933@reddit

I had a hail related claim with Lemonade about a year ago. Was a smooth process and was happy with the process. Not sure why all the hate on thread with them. Very interesting the policy is being cancelled.

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mckinneysub@reddit

I seriously only thought they did pet insurance.

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theoneintexas@reddit

Same thing happened to me a month ago. I'm also in the Dallas area. I got several quotes from Farmers, state farm, and all state. It was no problem finding a company to take over. I ended up choosing farmers. I liked the ease of Lemonade, and also had 1 small claim 3 years ago. Sucks but it is what it is.

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UnknownQTY@reddit

For Dallas? That’s wild. Their underwriters must be heinously risk averse.

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Dallas-Shooter@reddit

Douchebags ! I love that they wont take a risk in Tornedo Alley, Hurricane Alley, Fire Alley, Mudslide Alley or any other Alley unless its in Utah, New Mexico, Kansas, Ohio, Indiana, North and South Dakota or any other place that doesn’t have natural disasters…..

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omar_strollin@reddit

Lemonade is a company that you use to check a box, not for actually being reimbursed :(

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dj26458@reddit

Better you get canceled now than try to make a claim later and they deny you for bs reasons. Blessing in disguise.

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djwurm@reddit (OP)

we did have one claim a year ago and it was fine.. they paid and things were taken care of.

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Patient_Ad_2357@reddit

Companies don’t like paying out claims. Their underwriting determined you’re not in a good area for business. Not surprising with the weather we get. Lot of people end up with burst pipes or storm /hail damage throughout the year out here

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Plantpet-@reddit

Cool, bullet dodged! Change companies anyways haha

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TheMusicalHobbit@reddit

Lemonade is a Company????

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azwethinkweizm@reddit

Lemonade is a political activist company acting like an insurance company. They're doing you a favor because I doubt you'd see a penny for any claim you filed

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djwurm@reddit (OP)

I had one claim for pipe burst in shower and they paid out quickly.. I had no issues.

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