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
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Hey, Max! 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 Kurfürstendamm 231, 10719 Berlin. Your policy number is LP234F32.
We want to make sure you know what you're getting for your upfront payment of 5,20 € 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.
Who's covered?
This policy covers Max Schmidt, your partner, any children , and your relatives permanently living at Kurfürstendamm 231, 10719 Berlin.
Any mention of you or your stuff within this policy also applies to these other people and their things.
When?
This policy covers damages to your stuff, and events directly leading to damage or injury to others , that occur after 24. October 2021 at 09:32, 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.
Against what?
We cover your stuff against fire, smoke, explosion, burglary, robbery, vandalism, windstorms, hail, collision by vehicles or aircraft, and water damage caused by an unintended leakage of tap water, like burst pipes or a leaking appliance (e.g. your washing machine).
Your stuff is also covered against theft, lightning (including overvoltage due to lightning), flooding and weather-related backwater, earthquake, subsidence, landslide, snow pressure, avalanches and volcanic eruptions.
In addition to your stuff, you're also covered for injuries or damages that you accidentally cause to others.
Where?
We cover you in your home, as well as outside your home while you’re temporarily travelling anywhere in the world. Your stuff is covered worldwide as long as your trip abroad is less than 3 months.
You're also covered for damage you cause to others during a temporary stay abroad for up to 3 years within the EU and EFTA, or up to one year outside of the EU and EFTA.
For how much?
If your stuff gets damaged or stolen
Our policy provides automatic coverage for items worth up to 5.000 € each, up to a maximum of  30.000 € 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 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.
If you cause damage or injury to others
We’ll cover you for up to  5.000.000 € in total for all events occurring within 12 consecutive policy months.
If you’d like to increase any of these coverage limits, let us know.
How are your damaged items valued?
We offer 100% replacement value for any destroyed, damaged, or stolen item. This means we will pay you the cost to repair or replace an item (whichever is lower) based on the price of a new one of the same make and model, without any deductions for depreciation. If the exact item is no longer available, we’ll reimburse you enough to buy a replacement 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 30.000 € per event, for damages caused by fire, smoke, explosion, burglary, robbery, vandalism, windstorm, hail, collision by vehicles or aircraft, and water damage caused by an unintended leakage of tap water, like burst pipes or appliance leaks.
Your stuff is not covered against theft unless you have taken reasonable care to protect it. So remember to lock up your bicycle, and to not leave your phone unattended, otherwise they won’t be covered.
You’re also covered for damages to your stuff caused by lightning (including overvoltage due to lightning), flooding and weather-related backwater, earthquake, subsidence, landslide, snow pressure, avalanches, and volcanic eruptions.
We also cover reasonable and necessary costs arising from covered damages, to protect your stuff (e.g. to clean-up, to move your stuff during repairs, to transport your stuff into temporary storage or to a new address, to replace the locks, to provide temporary security). If the total damages exceed the coverage amount you selected, we’ll provide an extra 10% to cover these additional costs.
What's not covered
Damages not mentioned above, such as “I lost it,” “my dog ate it,” “my kid dropped it,” “my power went out,” “my computer died,” “my roof is leaking,” “I overfilled my bathtub,” “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, or while on loan to a friend, we won’t cover it.
We don’t cover items which mysteriously disappear.
We don’t cover stuff that’s usually covered by other types of insurance, such as auto, pet, or business. So damage to your car, business equipment such as your work laptop, professional camera gear, 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.
If the damage was caused by your gross negligence, we’ll cover you and waive our right to reduce the amount we pay. But we do not cover damage that was intentionally caused by you.
If you are underinsured (meaning the coverage amount you selected is less than the total value of your stuff), we’ll waive our right to reduce the amount we pay. But we do not cover damage above the coverage amount you selected.
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 are liable for causing someone damage or bodily injury as part of the risks of everyday life as a private individual, or if someone alleges that you are liable.
If needed, we'll provide legal defense at our own expense and pay the damages on your behalf.
We may investigate, settle, or contest the complaint on your behalf as we judge best.
The maximum amount we’ll pay in damages is 5.000.000 € in total for all events occurring within 12 consecutive policy months. A series of events relating to the same cause or relating to similar causes with an internal, in particular material and temporal, connection will be treated as a single event occurring at the same time the first of these events occurs.
What's not covered
We cover claims resulting in property damage, bodily injury, or financial loss but not things such as stress, mental anguish, reputational damage, or loss of data.
We cover financial losses you cause to others resulting neither from property damage nor bodily injury (e.g. you accidentally lock someone else’s bike with yours, so they are required to pay for a taxi to go to work). We don’t cover losses from financial or economic activities (such as investments or real estate), the infringement of intellectual property or copyrights, or due to your failure to meet a deadline. The maximum amount we’ll pay in these cases is 50.000 € per event.
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 make an exception for volunteering, babysitting or tutoring, internships, or other paid work as part of your studies.
We cover damage you accidentally cause to a home, holiday home, or hotel you rent (“Mietsachschäden”). This includes any fixed installations (e.g. sinks, floors, walls) or furnishings, as well as damage to any impacted neighbors or other third parties. But we don’t cover glass breakage, nor damage due to wear and tear.
We cover damages to items that you temporarily rent or lease. Damage to items you borrow are not covered.
You’re also protected if you lose the building or room keys to the apartment you rent. If this happens, we’ll cover the necessary costs to replace the locks and for temporary security measures, up to 50.000 € per event. But we don’t cover any damage if you lose professional keys (e.g. the keys to your office).
We cover damage you cause with your bicycle or electric bike. Damages caused when using motorized vehicles subject to compulsory insurance requirements (e.g. cars, mopeds, S-Pedelecs, e-scooters) are not covered.
We cover damage you cause when using small boats or watercraft. But we don’t cover boats with a sail area greater than 15m2, powered with motors exceeding 15 HP, or if compulsory insurance or a licence is required.
Damage caused by the use of drones or other aircraft subject to mandatory insurance requirements is not covered.
We cover damage caused by most small pets, but we don’t cover damage caused by dogs, horses, livestock, or wild animals. We make an exception for certified service dogs, or damage caused by someone else’s dog or horse while temporarily in your care.
We cover property damage arising from the exchange of electronic data (e.g. you accidentally spread a virus via an email or USB, making your friend’s laptop unusable). You must have taken appropriate measures to secure the data (e.g. up-to-date anti-virus software). However, we don’t cover any financial losses including damages from data breaches, or costs relating to the loss or recovery of data. The maximum amount we’ll pay in these cases is 50.000 € per event.
We don’t cover damage caused by firearms.
We don’t cover damage or injury arising from exposure to hazardous substances or lubricants (e.g. asbestos, fuel, oil). We make an exception for groundwater damage due to the leakage of household substances such as paint or bleach, if used in reasonable quantities (up to 50l per container and no more than 250l in total).
We don’t cover damage relating to the transmission of any disease.
We don’t cover damage caused intentionally, or as a result of a deliberate criminal or administrative offense.
We do not cover damage or injury that you cause to other people who are covered under this policy.
We don’t cover damage relating to harassment or discrimination.
You are 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 500 € 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 6.500 € (after we deduct the 500 € ‘deductible'). It also means there's no point in filing claims for anything less than 500 €.
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 without undue delay of any damage or loss. If it relates to injuries or damages that you accidentally cause to others, notify us within one week. But notify us without undue delay about any court proceedings against you.
Call the relevant authorities (e.g. police, fire department or emergency medical services) or other people in a position to help (e.g. landlord or 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). To the extent the loss is covered by other insurance, no coverage is provided.
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 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!
Cancellation and renewal
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 one month's 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 unless you are not responsible for the non-payment. For failure of subsequent payments, we will send you a reminder to the email you provided. If we do not receive payment within two weeks of the reminder, your policy will be cancelled immediately, according to statutory provisions.
When someone else causes 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!
If your situation changes
If any of the information you have provided to us has changed, you need to let us know.
In the case that you’re permanently moving, you’ll need to cancel this policy and create a new one at your new address.
Your stuff continues to be covered at your current address for up to one month after you start moving out. During this time, your stuff is also covered at your new address so long as the new address is within Germany. After one month, protection for your stuff will automatically end.
If your family situation has changed (e.g. your partner has moved in with you) we temporarily extend coverage for up to one month. If you would like to be permanently covered for this new situation, please let us know so we can agree on an update of your policy.
Information about your payments and contract
Your 5,20 € per month payment includes Insurance Premium Taxes (0,70 € at a rate of 19% on 85% of the premium for Contents, and 1,02 € at a rate of 19% for Personal Liability). Our insurance tax number is: 817/V20000040812.
If we update the conditions of your policy in your favor at no additional cost, we will apply these improvements with immediate effect.
That's it!
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.


Sincerely,
Daniel Schreiber and Shai Wininger
Founders






Lemonade Agency B.V. on behalf of the insurer Lemonade Insurance N.V.
Korte Leidsedwarsstraat 12-16, 1017 RC Amsterdam
The Netherlands

Lemonade.com/de
[email protected]
*Based on our US open source insurance policy which can be found on Github