Lemonade … and Purchasing Insurance

    Posted by MAIA on August 20, 2019

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    By Irene Morrill, CPCU, CIC, ARM, CRM, LIA, CRIS, CPIW  — VP of Technical Affairs, MAIA  

    So, an agent asked if MAIA had looked at the Homeowners policy from Lemonade.com. Well, you know, we aim to please …so we did. 

    In case you haven’t heard, Lemonade is an online site that tells visitors to “forget everything you know about insurance” and offers instant home and renters insurance quotes through a “charming artificial intelligence bot.”

    I truly believe that “John Q. Public” does him/herself a disservice by buying insurance online.  Insurance is NOT about price. Purchasing insurance online requires more background knowledge than buying socks or a book online.  

    Lemonade does provide a policy with its quote, but how many buyers would really read it and understand it?? 

    I thoroughly agree with Bill Wilson, CPCU, ARM, AIM, AAM, former VP Technical Affairs, IIABA National, who has said and written that insurance is NOT a “commodity.”

    (Just a little plug, he is one of the most interesting and knowledgeable insurance people I know and he’s teaching at MAIA’s Big Event this fall in Boston … don’t miss out!)

    The cover page of the Lemonade quote was interesting to say the least, and stated: 

    You’re Amazing

    You’re now part of a special group of people, who participate in making history. Together, we’ll be able to make insurance an honest, simple and fun experience. Thanks for joining, we’re sure you’re gonna love it here 😊

    Would someone really buy into that drivel? I guarantee you these “amazing” people will be shocked with some of the liability exclusions the Lemonade policy contains!

    The Lemonade policy pages state, “…includes copyrighted material of Insurance Services Office…”. Whenever you see a form of ANY type that states “includes copyrighted material” instead of just stating the Insurance Services Office, Inc. copyright, you KNOW you need to go LINE BY LINE to see where the differences lie. 

    After reviewing the Lemonade HO-3, I stand by my personal opinion that the average layperson should NOT purchase insurance “online.”

    We’ll look at the difference from the beginning of the ISO HO-3 to the end in that exact policy format. If you want to see a comparison of the Lemonade HO-3 with the ISO HO-91/2000/2011 then just click away. I tried to make it as painless as possible. It will be less painful for YOU than it was for me 😊

    Read my Lemonade vs. ISO Comparison Chart HERE

    Happy reading.

    Please remember that part of MAIA service is answering questions and providing information. Please feel free to email me when you have a coverage question, problem or issue. Perhaps I can help – at imorrill@massagent.com

    This article has been developed expressly for the members of MAIA.
    Reprint by other than members without the express permission of the author is not permitted.

    Thank You Partners 2018


    Topics: Tech Talk

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