World’s First Open Source Insurance Policy
Policy 2.0 is a radically simplified, modernized, and digitized insurance policy. This means you can actually read and understand it!Read the policy
Hey! Welcome to Lemonade.
We know you're gonna love it here :)
The Squeezed Version
Congratulations! This is your Lemonade Contents and Personal Liability Insurance Policy for your home at Gaandeweg 5 1103SG Amsterdam. Your policy number is LP234F32.
We want to make sure you know what you're getting for your upfront payment of € 14,50 per month, so we did our best to make this policy short and easy to understand.
Please take a few minutes to read through. If you need to, you can always change coverages and add valuable items.
This policy covers you, Peter Janssen, permanently living at Gaandeweg 5 1103SG Amsterdam.
Your houseguests are also covered for injuries or damages they cause to others, if they don’t have their own Personal Liability policies.
This policy covers damages to your stuff, and events directly leading to damage or injury to others, that occur after 11 August 2020 at 12:44, for as long as it remains active.
We'll automatically renew your policy on a monthly basis until either one of us decides to discontinue.
We cover your stuff against fire, lightning, smoke, explosion, burglary, robbery, vandalism, windstorms, hail, and water damage caused by burst or blocked pipes, or a leaking appliance (e.g. your washing machine).
Your stuff is also covered against theft, and other damage that is sudden and unexpected.
In addition to your stuff, you're also covered for injuries or damages that you accidentally cause to others.
We cover you in your home. You’re also covered outside your home while you’re temporarily travelling anywhere in the world (as long as your trip is less than 3 months!).
For how much?
Stuff and Valuables
Our policy provides automatic coverage for items worth up to € 5.000 each, up to a maximum of € 20.000 per event. Please take a minute to make sure it’s enough to cover the total value of your stuff as new, such as your clothes, jewelry, cameras, laptops, phones, furniture, and even your kitchen or flooring if you own it.
To cover items worth more than € 5.000 each for their full value, you’ll need to have them approved. Contact our team to add them to your policy.
When you cause damage or injury to others
We’ll cover you for up to € 1.250.000 in total for all events occurring within 12 consecutive policy months.
If you'd like to adjust any of the above coverages, please let us know.
How are your damaged items valued?
We will pay you the cost to repair or replace an item with a new one of the same make and model. If the exact item is not available, we’ll pay enough to buy something of equivalent type and quality. We don’t pay less just because your damaged item was used.
And now, for the full story...
If your stuff gets damaged or stolen
We cover stuff that you own, that’s normally kept at your home, and that was damaged or lost by things such as a fire, a burst pipe, burglary, or robbery.
We don’t cover cash, or stuff that’s primarily used for your business, or things you willingly handed over to someone else to look after.
This policy covers your stuff, up to a limit of € 20.000 per event, for damages caused by fire, lightning, smoke, explosion, burglary, robbery, vandalism, windstorm, hail, and water damage caused by burst or blocked pipes, or appliance leaks.
Your stuff is also covered against theft, as long as it is normally kept at your home. So if your mobile phone or your bicycle gets stolen while outside your home, you’re covered. Just remember to lock up your bicycle with an ART-approved lock (category 2 stars) otherwise it won’t be covered. Road bikes and ATBs also must be locked in an enclosed space or to a fixed object (e.g. bicycle rack, lamppost).
Your stuff is also covered against other damage that is sudden and unexpected, even if you caused it yourself. For example, if you accidentally spill coffee on your rug, or knock over your new TV, this would be covered. But this does not extend to mobile electronics (smartphones, laptops, or tablets), which are only covered against fire, lightning, smoke, explosion, theft, burglary, robbery, vandalism, windstorm, hail and water damage caused by burst or blocked pipes, or appliance leaks.
You’re also protected if your house keys are stolen. If this happens, we’ll cover the necessary costs to replace the locks or keys.
What's not covered
Damages not mentioned above, such as “I lost it,” “my dog ate it,” “I dropped my phone,” “my computer died,” “I found bed bugs in my mattress”, “my roof is leaking,” “I found mold on my sofa,” aren’t covered.
We pay up to € 5.000 per item. Higher value items will need to be added to your policy and approved by our team first. So please let us know if you have any items worth more than € 5.000 each, so we can cover them fully. Things normally purchased as a pair or set, like a pair of earrings or a drum kit, are considered a single item.
We cover your physical stuff, but things like your health, reputation, identity, data, lost wages, privacy, credit rating, and financial instruments (including cash, cryptocurrency, and stocks) are not covered.
We cover only stuff that’s normally kept in your home, balcony, terrace, garage, garden shed, or a storage unit in your building, but not common or unprotected areas. Things that are normally kept elsewhere, like at your vacation home, office, or a storage facility, aren’t covered.
We only cover the stuff you own and in your possession. Things you borrow or willingly hand over to someone else, are not covered. So if you handed something you own to someone else, it’s under their responsibility and won’t be covered. For example: if your stuff gets damaged during shipping, dry cleaning, an apartment move with movers, handling by an airline, while on loan to a friend, or used by an Airbnb guest, we won’t cover it.
We don’t cover stuff that’s usually covered by other types of insurance, such as auto, business, or pet. So damage to motorized vehicles with compulsory insurance requirements (e.g. mopeds, e-bikes with a maximum speed above 25 km/h, e-scooters, Segways), business equipment such as your work laptop, injuries to your pets, and so on, aren’t covered.
We don't cover property that is illegal for you to own, nor any firearms.
We don’t cover damage to mobile electronics (smartphones, laptops, tablets) caused by accidental damage. So if you drop your phone, or spill water on your laptop, this is not covered.
We don’t cover items that are lost, or which mysteriously disappear.
If the damage was intentionally caused by you, or was a result of your recklessness or evident negligence, this is not covered.
Damage relating to normal wear and tear (e.g. scratches or stains), or which arises gradually (e.g. mold or rust), is not covered.
We don’t cover damage due to improper cleaning or repair, or faulty construction or installation. Similarly, we don’t cover damage to items due to their own defects.
Damage caused by pets, insects, vermin, or any other animals is not covered.
We don’t cover damage caused by floods, earthquakes, landslides, or groundwater.
Damage caused by war, terrorism, civil unrest, or nuclear energy is not covered.
If you accidentally cause damage or injury to others
This policy protects you if you have caused someone property damage or bodily injury as part of the risks of everyday life as a private individual, or if someone claims you have done so.
If needed, we’ll provide legal defense at our own expense and pay the damages on your behalf. The maximum amount we’ll pay in damages is € 1.250.000 in total for all events occurring within 12 consecutive policy months. A series of events relating to the same cause will be treated as a single event occurring at the same time the first of these events occurs.
We may investigate, settle, or contest the complaint on your behalf as we judge best.
What's not covered
We cover claims resulting in property damage or bodily injury, but not things such as stress, mental anguish, reputational damage, loss of data, or pure financial loss.
We also don’t cover damages usually covered by other types of insurance (such as auto, hunting or professional liability).
We cover damage you cause with your bicycle or electric bike. Motorized vehicles with compulsory insurance requirements (e.g. mopeds, e-bikes with a maximum speed above 25 km/h, e-scooters, Segways) are not covered.
We cover damage you cause with small boats or watercraft. But we don’t cover boats with a sail area greater than 16m2, or powered with motors exceeding 4 HP.
Damage caused by drones or other motorized aircraft is not covered.
We don’t cover damage caused by firearms.
We cover your liability as a private individual. So if you are renting out your home as a landlord or are conducting other business, this would not be covered.
We cover damage you accidentally cause to the home or hotel you rent (including rented furnishings), if caused by fire or water. We don’t cover damage caused by other reasons (like scratched floors, or if you accidentally put a hole in the wall).
We don’t cover any damage caused by horses, livestock, or wild animals that you own, or that are permanently in your care.
We don’t cover damage caused by intentional acts or inaction. This includes while under the influence of alcohol or other substances, or where the damage was actually caused by someone else in your group.
Damage to items you borrow or rent are not covered.
We do not cover damage or injury that you cause to other people who are covered under this policy.
We don’t cover damage or injury arising from exposure to hazardous substances or lubricants (e.g. asbestos, fuel, oil), or the transmission of any disease.
We don’t cover damage relating to harassment, sexual behavior, discrimination, or a deliberate criminal or administrative offense.
You are only covered if the claim is based on statutory liability provisions under private law. So if you’ve agreed to pay for damages, even if you aren’t responsible, this wouldn’t be covered.
Alright, time for a coffee.
...aaaaaand we're back.
Your participation if something bad happens
AKA your 'deductible'. It is now set to € 100 per event.
A deductible is an amount that defines your participation in potential damage. It’s called a deductible, because it’s deducted from your claim payment.
For example, if you have a covered claim that amounts to € 7.000, we will end up paying you € 6.900 (after we deduct the € 100 ‘deductible'). It also means there's no point in filing claims for anything less than € 100.
Opting for a higher deductible means you’re taking more of the risk on yourself, so it is often a way to lower your monthly payment. You can increase or decrease your deductible. It’s up to you.
Your obligations if something bad happens
You are required to take immediate steps to minimize damages, notify us, and help with our investigation.
And more specifically...
Notify us right away of any damage or loss.
Call the relevant authorities (e.g. police, fire department or emergency medical services) or other people in a position to help (e.g. landlord, apartment manager).
Take reasonable steps to avoid or minimize the damage (e.g. move property or people out of harm's way, try to put out the fire, call a plumber to prevent ongoing damage). You can include any associated costs that you consider reasonable and necessary in your claim.
Take reasonable steps to recover your losses, including exhausting other insurance before making a claim with Lemonade (e.g. your travel insurance). This policy does not provide cover to the extent the loss is covered by another insurance policy, or would be covered by another insurance policy if this policy did not exist.
Provide us with the information and records we ask for as soon as possible (e.g. contact information for parties that may be involved, proof of ownership).
We may ask you to provide evidence or recorded statements relating to your claim. We may also ask you to take other reasonable steps to ensure we have complete and truthful accounts of the loss and its circumstances.
If you cause damage to others while abroad, we will provide a deposit up to € 100.000 if required by a government authority. You authorize for us to receive the deposit back if released, and will cooperate to help recover the full amount.
If you end up recovering your stuff (e.g. it was stolen and you get it back), you agree to return the money we paid you for that loss.
This is important...
If you fail to provide complete and truthful information at any time, including prior to the purchase of the policy or following a loss, or to comply with any obligations agreed in this policy, we may reduce or even completely refuse coverage according to statutory provisions.
We may also report it to the authorities.
Some technical stuff, then we're done!
Our policies renew automatically on a monthly basis. Your policy will remain active until it is cancelled by you or by us.
If we choose to cancel this policy, we'll notify you at [email protected]. We will provide at least two months' notice.
You are free to cancel your policy at any time, and we will return the unused portion of your payments. Also, please note cancellation will only take place from the date you asked us to cancel the policy, and not before.
If you fail to make a payment, we will contact you at the email you provided. If you miss the very first payment, your policy will not be activated until payment has been made, and received by us. For failure of subsequent payments, we will send you a reminder to the email you provided. If we do not receive payment within 14 days of the reminder, your policy will be cancelled immediately, according to statutory provisions.
When someone else caused your damage
As part of loss payments that might take place under this policy, we will pursue the responsible party to recover what we can, to the extent we are allowed to, according to statutory provisions.
If you get reimbursed by someone else, like your credit card company, your friend, or landlord, you agree to return the money we paid you for that loss. No double-collecting allowed!
Moving to a new address
If any of the information you have provided to us has changed, you need to let us know.
In the case that you’re moving, you’ll need to cancel this policy and create a new one at your new address. You’ll continue to be covered at your current address for up to one month after you start moving out. During this time, you’re also covered at your new address so long as the new address is within the Netherlands. After one month, this policy will automatically end.
Kudos to you my friend, because you’ve just become a master of your insurance policy! Tell your mom, brag at parties, put it on your resume… because let’s face it, people will be impressed.
And of course, please contact us if anything remains unclear, or if you need more coverage than this policy provides.
We wish you a wonderful year - but should you encounter any problems along the way, we’ll do our best to undo them.
Daniel Schreiber and Shai Wininger
Lemonade Insurance N.V.
Weesperstraat 61-105, 1018 VN Amsterdam
*Based on our US open source insurance policy which can be found on Github