In 2022, economic inflation and increasing migration of renters raised renters insurance premiums across the US. In November of 2022, Lemonade commissioned a nationwide
Of those surveyed, 61% experienced an increase in rent within the past year and 74% expressed concerns over the state of the economy. The report also notes that 63% of respondents have considered moving for cheaper rent due to high costs, and 65% had to look for places to live with the least expensive rent possible. More than half, 60%, had to downsize their rentals due to inflation.
The rental market has been turbulent since the start of the pandemic. A little more than half (53%) of Lemonade's survey respondents say that at some point during the pandemic, they signed a new lease agreement. The report also surveyed renters of "sweetheart deals", or unofficial agreements or discounts set with a landlord during the pandemic. Many of these renters are seeing their rent costs
"If you followed the real estate market during the pandemic, it was clear that many people were fleeing their big city apartments for the spatial luxuries the suburbs offered—this left many building owners and landlords with empty apartments to fill, but no tenants to fill them. Enter the
Though 65% of respondents expect the rental market costs to continue to rise, "69% are optimistic that their economic situation will improve in 2023," the survey found.
"The use of technology provides certain efficiencies that, in turn, result in lower costs and fairer prices for our customers," Burgess adds. ""At Lemonade, our platform was built from the ground up on a digital substrate and powered by AI. For instance, through our chatbots, customers can get a renters quote for as low as $5 in only 90 seconds or file a claim and be paid instantaneously, all of which can be done with zero paperwork."