Lemonade is requesting a 10% rate increase for its HO-3 homeowners program in Illinois, with changes proposed to take effect on August 17, 2026 for renewal business.

The filing covers 1,579 policies and approximately $4.43 million in written premium. If approved, written premium would rise to about $4.87 million, representing an increase of roughly $443,000.

While the overall indicated need is higher at 18%, Lemonade selected a more moderate 10% rate change. Individual policy impacts are expected to range from a 3.2% increase to a maximum of 11%.

The actuarial justification relies on the loss ratio method using experience through year-end 2025, with adjustments for premium and loss trends, catastrophe exposure, and reinsurance costs. Catastrophe modeling incorporates multiple perils, including hurricane, wildfire, and severe convective storm, alongside internal data.

The filing also includes updates to loss cost modification factors to align rates with the proposed level changes.