Lemonade Insurance Company has filed a rate and rule revision in Arizona for its Homeowners (HO3) program, effective November 4, 2025, for new business and December 12, 2025, for renewals. The filing affects 1,902 policyholders and $3.1 million in written premium, with a projected premium increase of $620,753.

The filing requests an overall 20% rate increase, supported by an indicated change of 31.3%, reflecting updates to Base Loss Costs and Loss Cost Multiplier Factors (LCMFs). The company utilized AIR Touchstone v10.0 for catastrophe loss and allocated loss adjustment expense (ALAE) ratio modeling to refine its pricing structure. Lemonade emphasized that all Arizona ZIP codes must be explicitly included in the rating model to ensure compliance with regulatory standards and avoid unfair discrimination.

The filing was submitted under the Use & File method and follows a prior 20% rate increase effective October 8, 2024. The insurer noted that while Fast Track was considered as a potential data source, it was not used for earned premium calculations in this submission.