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Monday, July 30, 2018

Lemonade for Surviving the Insurance Industry Scam; Biggest Scam Artist Since Madoff


 

Poor Man Survival

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Consumer alert:  Allstate owns Progressive, esurance, the general and others AND therefore, much of what they state in their TV advertising is verisimilitude or the appearance of truth or in my opininion, a lot of crap.  There should be a large banner across the bottom of such ads warning the public.  The FTC has failed in its duty to protect the public from such shams. 

[The same applies to travel booking services:  Surprise: Orbitz, Travelocity, Expedia + 20 Others All Jointly Owned]

We just spend a big chunk of change renewing our auto, health, homeowners [on two properties] and other insurance policies through the same carrier and each year we get hit with higher premiums and the same song and dance…premiums are higher because you live in MI and because you have a bad credit score.

Our so-called bad score is based on the fact that we pay cash for everything and we do finance anything including our homes, autos, etc.  Although, to combat this nonsense, we finally obtained a credit card to “build” our credit score.

As far as auto insurance, MI has the worst auto insurance in the nation and I have been waging a losing battle against the political elite here for a year who are in the pockets of the legal establishment and the medical industry to maintain the status quo which enjoy the sky high rates in order to fleece the pockets of the disabled, the poor and seniors who must pay sky high rates [even those who already pay for other policies including Medicare are FORCED to pay for unlimited medical insurance policies on their auto policies in MI – the only state in the nation to do so]!

Lemonade is a new face on the homeowners and renters insurance scene, but it’s already receiving tremendous feedback from consumers. Lemonade breaks the traditional insurance mold with low rates, a mutual insurance model, high-tech solutions, and transparency that is a welcome change from the norm…

Lemonade is stirring up a lot of commotion “reversing the traditional insurance model.” Its homeowners’ insurance model really does something revolutionary with its services. Shifting the focus from revenue to benefits, it’s a combination of innovative technology, flexible policies, and modern thinking. Not sure what that all means? Let me show you what Lemonade is all about.

Pros

  • Affordable homeowners and renters insurance
  • Tremendous online rankings
  • Transparent policies
  • Fast, easy claims processing

Cons


 

How Does Lemonade Peer-To-Peer Insurance Work?


Lemonade is a peer-to-peer insurance provider. That means people pay their premiums into a communal pot, and claims are covered by the money that’s in the jar.

The peer-to-peer model has recently expanded to several areas throughout the industry,  with companies like Prosper and LendingClub offering specialized social loans. This P2P model is certainly a refreshing twist to the gray and outdated insurance industry.

That’s already vastly different than the standard every-man-for-himself model, but Lemonade goes further. Traditionally, insurance companies tried to lure you to pay the highest premiums possible because that meant more money in their pockets. Then, they’d use red tape and hidden terms to deny your claims because the less money paid out in claims, the more revenue the company gets to keep.

The most amazing feature of Lemonade’s business model is this: After covering expenses, updating technology, and paying employees, Lemonade will donate leftover money to charity.

This is a really unique, innovative way to make sure that you and your insurer are not on opposite ends of a battlefield.

If you have a claim, a traditional insurer is incentivized to fight you, because if it doesn’t pay that claim, it will pocket that money as profit. Lemonade won’t get that money in any case because it will be earmarked for charity. We’ll dig deeper into this Giveback Program later in the article.

A Millennial Approach


Lemonade embraces technology unlike other insurers. Whereas traditional insurance companies offer plans that I might liken to a dial-up modem, Lemonade services are more like high-speed mobile internet. You can sign up for everything via the mobile app or online, make claims, and receive reimbursements without ever leaving the couch.

Claims are also automated for faster turnaround. You just upload a video of the damage, and Lemonade reviews the claim instantly. After approval, you’ll have the money transferred to your account so you can replace the item or have the property damage repaired. What people really love about Lemonade is the speed with which claims are processed. In fact, a quarter of claims are paid out in under 3 seconds!


What Does Lemonade Cover?


Lemonade coverage is pretty exhaustive, especially for the price. Generally, Lemonade can cover everyone in your home (all relatives included for no additional cost) excluding roommates who are not related to you, and all of your belongings even if they’re not in the house at the time of damage. Here’s what you can expect to be covered with a Lemonade homeowners/renters insurance policy:

Reconstruction Costs


If damage is done to your home, insurance covers the cost to repair those covered damages.

Personal Property Damage


Lemonade also covers damage or destruction of any personal items.

Personal Property Theft


You’ll be reimbursed if your personal property is stolen, and what’s even more impressive is that items are covered regardless of where the item is (in your home, outdoors, in France!).

Other Person Liability


Lemonade covers medical expenses and legal fees when another person is injured and you are held responsible. This also refers to injuries sustained on your property for which you are held liable.

Loss of Use


Finally, Lemonade will cover any living expenses you incur if forced to leave your home for covered reasons.

Is Lemonade Worth the Cost?


Easily one of its most prominent features is the low-cost of having Lemonade insurance. When compared to the competition, Lemonade wins hands down in the rates department. No matter which policy and competitor I compared it to, Lemonade was at least $10 cheaper, and more often than not it was $200, $300 or even $400 less. In short, Lemonade offers tremendous value for your money. If you aren’t looking for a bundled insurance policy, this is easily your cheapest bet. Where you live, what you want insured, and deductibles will factor into your premium cost, but a lot of people can get Lemonade insurance for just $5/month.

Not only does it boast the lowest rates, but you can adjust your deductible at any time to increase or decrease your premiums. They’re inversely proportional, so if you pay more of a deductible, you’ll pay less premium. What’s more, Lemonade offers some of the highest coverage limits in the industry. That means you’ll get more money for your losses than you would from competitors.

Lemonade also offers discounts for good credit or owning an alarm system, smoke detectors, or home monitoring system. Don’t have a fire alarm or security system? Lemonade will give you a discount on your premiums even if you live within close proximity to one of the major defense departments like a fire station or police department.


Coolest Lemonade Features


Zero Everything


Lemonade’s Zero Everything policy is great for people who have a lot of smaller items they want insured. This policy waves the deductible for claims made in exchange for a slightly higher premium. Let’s say your $350 tablet breaks. With a $100 deductible, you’ll get $250 to have it replaced. With Zero Everything, you’ll get the full $350 (after paying a higher premium). And unlike many insurers, Lemonade won’t increase your rate if you make two claims or less annually.

Extra Coverage and Add-Ons


Lemonade allows you to increase your coverage limit for more valuable items. For example, standard coverage limit for jewelry insurance is $1,500. However, you can expand your coverage, so the limit for that same item rises to an impressive $50,000. Such high limits for expanded coverage is a unique feature that you won’t easily find with Lemonade’s competitors. Coverage also applies to belongings stored in an outdoor unit. Items eligible for additional coverage include artwork, jewelry, bikes, musical instruments, and more.

Mobile App


With the sleek Lemonade app, you can request a quote, sign up and even file claims on the mobile app, making the entire process streamlined and so much faster than anything I’ve ever seen in the insurance industry (not to mention convenience you won’t find anywhere else). You can also tailor your coverage options and immediately apply changes via the app.

Transparency


Lemonade is straight-forward and easy to work with. It tells you everything you’ll need to know, doesn’t hide behind complicated jargon, and explains policy rules and caveats.


What’s This About Charity?


Anyone who likes the idea of big corporations giving back will appreciate Lemonade’s Giveback Program. This initiative lets Lemonade customers pick charities to donate their premiums to. Here’s how it works:

  • Lemonade takes a flat rate percentage (20% to be exact) to cover salaries, costs, etc.
  • Another percentage goes back to purchasing reinsurance coverage
  • The rest goes towards claims

Now, here is where the charitable donations come in. If there is money left over in the claims pool, that remainder will go to charity. In the first year of the program, Lemonade gave away an unbelievable 10.2% of its annual revenue to charity through the Giveback Program.


Drawbacks


Sounds too good to be true? Well, you can stop pinching yourself because Lemonade is the real deal. So, what’s the downside to this up and coming insurance model? For one thing, Lemonade isn’t available everywhere, yet. Coverage is an option only if you live in the following states:

  • Arizona
  • Arkansas
  • California
  • District of Columbia
  • Georgia
  • Illinois
  • Iowa
  • Maryland
  • Michigan
  • Nevada
  • New Jersey
  • New Mexico
  • New York
  • Ohio
  • Oregon
  • Pennsylvania
  • Rhode Island
  • Texas
  • Wisconsin
  • Washington DC

Live anywhere else, and you’re out of luck. Lemonade has promised to roll out several more coverage states within the year, though. Another downside to Lemonade’s coverage is that it only includes homeowners and renters insurance. You can’t bundle your auto insurance into a package deal to minimize your insurance expenses, for example. If that’s your goal, you should look elsewhere.


Summary


Lemonade Peer-to-peer insurance is a refreshing take on the more stagnant insurance model. The company has found a really unique way to make sure it’s not incentivized to cheat you (the money it has leftover goes to charity instead of to its own pocket). It offers a quality service that makes homeowners insurance affordable to everyone. Strong financial health and outstanding customer feedback give new customers all the encouragement they need to trust in this company.

Lemonade’s Giveback Program, smart mobile app, and easy claims process are just more reasons to support this service. What’s more, with excellent rates, a wide range of coverage, and useful add-ons, the company has definitely turned lemons into lemonade. Check out how easy it is to sign up for Lemonade now.
 

Should You Buy Home and Auto Insurance Endorsements? 
They could save or cost you money!



Most people pay just about every expense they have using a credit or debit card – so why not rent? UrbanR allows you to do just that. It’s not an arrangement for everyone, but it is certainly worth investigating if you've ever experienced difficulties or inconveniences with paying or receiving payment for rent.


Taking a road trip can definitely be more budget-friendly than flying, and it allows you to experience all sorts of areas and landmarks along the way. However, if you’re not careful, you can easily overspend on your cross-country adventure.

 

Final Notes…

Contributors and subscribers enable the Poor Man Survivor to post 150+ free essays annually. It is for this reason they are Heroes and Heroines of New Media. Without your financial support, the free content would disappear for the simple reason that I cannot keep body and soul together on my meager book sales & ecommerce alone.


How to Build a DIY Air Conditioner in Minutes for Less Than $10

https://www.moneytalksnews.com/how-make-8-air-conditioner/

 

Meet the World's Greatest Scammer

 

 


Over decades, psychic Maria Duval (or those acting under her name) stole over $200 million from Americans and Canadians, scamming 60 times the number of people that Bernie Madoff did. In this in-depth CNN investigation and new book, reporters track her down in France, and get a number of surprises.

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Additional Resources

 
Your Free Middle Class Survival Kit

SAVE & MAKE Money

Researched by our editors and include 100s of tips, tricks and insider methods of saving money, earning extra money [many from the comfort of your home], the best places to live,  How to find little-known freebies, discounts and other benefits-over 2,000 programs!


 

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How to Survive the War on the Middle Class

14 of the best reports I’ve assembled on protecting your freedom-Download link.


 

Rosefield is a classic traditional cabin, which can be built for less than $6,000. The cabin is open plan, which has the advantage of making it far easier, cheaper and quicker to build than more intricate cabins with separate rooms. This particular plan also includes a detailed cabin assembly diagram and step-by-step instructions which includes a foundation guide.  [282sf’]


 

 



 


 

 

 

A Smoking Frog Feature, Shallow Planet Production

4 comments:

Larry said...

Great resources [as usual] and I agree, the FTC should be warning a gullible public about the likes of Allstate and its many 'branch insurance' offices such as Progressive as it tries to pull the wool over the eyes of consumers and as you pointed out in your previous article where you ranked the worst [in terms of consumers] Progressive [aka: Allstate] has always been one of the worst for your pocketbook along with its anti-consumer policies.
By the way, glad you are recuperating well from your second heart operation! How are your studies going?

Dave said...

Terrific resource! I know Michiganians have been getting scammed for years by politicians on both sides of the aisle [it is what they do] in regard to insurance...consumers were sold a bill goods, promised lower rates & then WHAM, got socked with the highest rates in the nation! You just can't trust 'em when money & special interests are involved.

Cody said...

Nice piece! Miss reading your content more often...glad to see your recuperating so rapidly from your heart operation [must be a bear having it go bad again]. Hope your studies are continuing again and by the way, our group is grateful for the donation you made recently as our veterans make good use of everything we get!

PoorMan said...

Reinsurance...Someone asked about it. It is a means of sharing risk among insurers and is a common practice.