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, a significant other, and any children 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 15. September 2019 at 14:09, 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, burglary, robbery, vandalism, windstorms, hail, and water damage caused by burst pipes or a leaking appliance (e.g. your washing machine).
Your stuff is also covered against theft, 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. You're also covered 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 2,000 € each, up to a maximum of 30,000 €. Please take a minute to make sure it’s enough to cover the value of your clothes, jewelry, cameras, laptops, phones, furniture, and even your kitchen if you own it.
To cover items worth more than 2,000 € 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 5,000,000 € in total for all events occurring within the last 12 months including any current event.
If you’d like to increase any of these coverage limits, 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 30,000 € per event, for damages caused by fire, smoke, burglary, robbery, vandalism, windstorm, hail, and water damage caused by burst 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 you are outside your home, you’re covered. Just remember to lock up your bicycle otherwise it won’t be covered.
You’re also covered for damages to your stuff caused by lightning, flooding and weather-related backwater, earthquake, subsidence, landslide, snow pressure, avalanches, and volcanic eruptions.
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 2,000 € 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 valuables worth more than 2,000 € 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 or a storage unit in your building, but not common or unprotected areas. Things that are normally kept elsewhere, like at your summer house, office, or a storage unit, 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 stuff that’s usually covered by other types of insurance, such as auto, travel, 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.
We do not cover damage that was intentionally caused by you, or could have been avoided through reasonable precautions. For example: if something has happened before, and you haven’t fixed the problem fully, that’s on you. If the damage was caused by gross negligence, we will reduce the amount we pay depending on the severity of the fault.
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 someone claims you caused them bodily injury or property damage as part of your everyday life as a private person.
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 5,000,000 € in total for all events occurring within the last 12 months including any current event. 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.
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, pet, boat, hunting or professional liability).
We cover your liability as a private person. So if you are renting out your home as a landlord or are conducting other business on the premises, this would not be covered.
Damage caused by drones, other flying machines, or motorized vehicles of any kind (such as electric bikes, Segways, or electric skateboards), is not covered.
We don’t cover damage caused by firearms.
We cover damage you accidentally cause to the apartment you rent, and to the building you live in, if caused by fire or water, but 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 an animal you own, or that’s in your care.
We don’t cover damage caused intentionally, or as a result of a deliberate criminal or administrative offense.
Damage to items you borrow are not covered.
We do not cover damage or injury that you cause to other people who are covered under this policy, your relatives, or others living with you.
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 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 you 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 right away, 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. try to put out the fire, call a plumber to prevent ongoing damage, move property or people out of harm's way). You can include any associated costs that you may 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
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. 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 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 Germany. After one month - or earlier if you’ve already moved - this policy will automatically end.
Exciting tax information
Your 5.20 € per month payment includes Insurance Premium Taxes (0.70 € at a rate of 16.5% 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.
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 Insurance N.V.
Weesperstraat 61-105 Amsterdam, 1018 VN The Netherlands

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