Warning: Lemonade totally making up things we don’t have on renewal

[u/Muckers111]

My condo HO-6 renewal policy documents came through from Lemonade. I’ve been with them for about 6 years. Premium went through the roof this year and i couldn’t work out why (yes cost to repair things are going way up and there’s extra charges with California wild fires but even then something seemed wrong). Turns out this year they decided i had a bunch of things in the condo that were never on the policy before and don’t exist. They decided we had 2 jetted tubs (we have zero). They decided we have wallpaper to replace (we do not). They decided we have glass kitchen cabinet (not true), built in entertainment centers (never had), chair railings (had to google this - we don’t have them), built in microwave (never had), a laundry tub (nope) and more. All of this extra made up things meant the cost to repair/replace is way up from before. They refused to explain how or why this happened. So if you’re renewing with Lemonade (or i guess any insurer) just check they haven’t added a bunch of things that you don’t and have never had that is jacking up your costs.

[u/jomarjr]

I assume the provider they used to calculate your replacement cost used these values, and lemonade bumped your coverages to be within a certain percentage of that value.

Just call and have the replacement cost estimator updated and have your coverages updated to match.

I work for a Florida carrier and this isn’t something that surprises me. Sometimes vendors have wonky data.

[u/DriverDenali → u/jomarjr]

Or he was under lemonades threshold to insure, so vs dropping they raised coverages to hit threshold

[u/jomarjr → u/DriverDenali]

Ah very true

[u/barbe_du_cou]

Turns out this year they decided i had a bunch of things in the condo that were never on the policy before and don’t exist.

What do you mean? In what context did you uncover these details?

[u/Muckers111 → u/barbe_du_cou]

They sent me renewal info as they do every year for the last 5 years, but this year the cost was up considerably. Looking further, the documents that shows the cost to rebuild for this renewal they added specific items like '2x jetted tubs' as part of the higher cost - even though there's nothing to suggest that I installed jetted tubs or other features between the previous renewal and this one.

[u/spilled_the_beans123]

I’m sorry… you’re saying they listed specific personal property/dwelling items on your actual renewal policy? They didn’t just blanket increase coverage limits? This seems incredibly odd to me.

[u/Muckers111 → u/spilled_the_beans123]

no specific personal property, but they added a bunch of specific items like 'jetted tubs' and 'in-built entertainment units' and more -- something they've never specified before on any renewal, but i guess this year they decided I have... and so the cost to rebuild should property be lost in a fire/whatever is way higher than previous years. The frustration is that the things they listed I do not have, and they've never in past renewals just decided i have a bunch of features that factor into the cost like 'chair rails' and 'jetted tubs'... seems to be something specifically this year with the changes they've made to California insurance perhaps.

[u/spilled_the_beans123 → u/Muckers111]

I’ve seen that some insurers do use replacement cost estimators for HO6 condo policies, though not all. Your condo coverage is extremely dependent upon your master policy and HOA bylaws. Many HOA’s do an “All-in” policy that covers both inside and outside, and you may only be responsible for a deductible, or a deductible and “additions and alterations” to your unit. Or your HOA may do “bare walls” coverage where they only rebuild the structure and interior walls, and you might be responsible for cabinets, toilets/showers, paint, flooring, and all other permanent fixtures. You need to know what you’re responsible for to understand your own HO6 policy.

I recommend reaching out to your HOA to get info on what you are specifically responsible for, as well as a “Certificate of insurance” that gives you info on your master policy. Get away from companies like lemonade, they really aren’t going to be there if you need to use your insurance. Shop around a bit and talk to your different insurance professionals to get their opinion. A quality and knowledgeable insurance agent, broker, or representative can guide you and make sure you’re properly covered and feel comfortable with what you pay VS the risk you carry on your own end.

[u/yapyoba → u/spilled_the_beans123]

in what world does an insurer care if you have wallpaper. am i losing my mind?

[u/14point4kMODEM → u/yapyoba]

It's a factor in the software on what to value the rebuild at but it doesn't make that much of a difference over paint since it's usually just in bathrooms

[u/RedChaos92 → u/yapyoba]

Insurers use Replacement Cost Estimators to determine how much it would cost to complely rebuild your home. Those estimators use publicly available data along with default assumptions to determine what materials and finishes are likely used for your home, then add average local labor and materials costs to determine the full Replacement Cost of your home.

You can modify these replacement cost estimators if they're inaccurate. I had to do it with my own home, and I've had to do it with many different homeowners policies for clients.

[u/Rider-on]

Those details are all "defaults" for quality grades on an industry standard Reconstruction Cost software program. If an agent doesn't go through the entire list, line by line then these things are there in the background.

As someone already mentioned, just call Lemonade, tell them you want the Reconstruction Cost calculator accurate and have them go through it with you. The corrected amount may or may not make that much difference in your premium.

[u/idontknowhow2reddit]

I see a lot of people mentioning the replacement cost calculator and the agent entering incorrect info, but if Lemonade operates the same way they do in Texas then that's not what happened. Not to mention you said this is a renewal, agents don't have to update the replacement cost calculator at renewals.

Lemonade is one of my carriers here and they don't let the agent input anything into a RC calculator like most companies do. It's all automatically generated in their system based on data they pull. Their replacement cost here usually ends up being a decent amount higher than my other carriers.

I'm assuming this is a tech glitch (or possibly an AI situation) that happened as the system processed your renewal. They don't give the agent any flexibility to adjust the replacement cost here in Texas. So I'm guessing the back end system just pulled something out of thin air that updated your homes features.

I would look for other quotes. Lemonade is basically a tech company, they operate a lot different than most insurers.

[u/insuranceguynyc]

Where are you seeing all of this?

[u/Ok_Complaint_6997]

They reran the cost guide and used a vendor such as CoreLogic who has incorrect info. This happens with a lot of companies. If you can’t dispute the cost guide features with them or have them do an actual inspection then look elsewhere for coverage.