Lemonade launched its renters insurance product in South Carolina on April 2 2026, offering policies that start at $5 per month and can be fully customized through the company’s app. The new coverage allows renters to adjust coverage amounts and deductibles, and 40 % of claims are processed instantly, while the product is priced roughly 30 % lower than typical state offerings.
The move is part of Lemonade’s broader strategy to grow its renters insurance business across the United States. South Carolina does not require renters insurance, but the state’s sizable renter population presents a significant opportunity for a digital, AI‑driven insurer that can deliver low‑cost, high‑speed service. By adding this market, Lemonade expands its geographic reach and strengthens its portfolio that already includes home, car, pet, and life products.
Lemonade’s Q4 2025 results provide context for the launch. Revenue rose 53 % year‑over‑year to $228 million, and the company posted an earnings‑per‑share of –$0.29, beating analyst expectations of –$0.39 by $0.10. Gross profit grew 73 % YoY, and the adjusted EBITDA loss narrowed to $5 million. Management highlighted the quarter as the company’s strongest ever and reiterated its goal of achieving adjusted EBITDA profitability by Q4 2026 and for the full year 2027.
The expansion aligns with Lemonade’s focus on AI‑powered pricing and cross‑sell initiatives. A July 2025 reinsurance change reduced the quota‑share cession rate from 55 % to 20 %, improving the loss ratio and allowing the company to retain a larger share of premiums. In‑force premium reached $1.24 billion, up 31 % YoY, supporting the company’s 30 % growth outlook for 2026.
Competitive context shows Lemonade positioning itself against traditional insurers such as Nationwide and USAA, as well as other insurtech players like Next Insurance and Kin Insurance. The South Carolina launch gives Lemonade a foothold in a market where digital‑first, low‑cost coverage can differentiate it from legacy providers.
Regulatory notes indicate that renters insurance is not mandated in South Carolina, and no unique state regulations were identified that would affect Lemonade’s product offering. The launch demonstrates the company’s ability to navigate state‑level insurance markets while maintaining its digital, customer‑centric model.
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