Liability insurances simply explained

Some people get shivers down their spine just hearing the word: aansprakelijkheidsverzekering. At 29 characters, it just misses the top 10 longest Dutch words (that honor goes to kindercarnavalsoptochtvoorbereidingswerkzaamhedencomitéleden, in case you were wondering). But these 29 characters can still cause quite a bit of stress. Fortunately, you no longer have to worry.

Read on, and you’ll soon be a pro at liability insurance in the Netherlands.

What is liability insurance, and is it mandatory?

Sometimes bad things happen, and people make mistakes. When they do, it’s good to be insured. That way, you can avoid facing unexpected large expenses if you’re held liable for damage and have to pay compensation.

Liability insurance covers damage accidentally caused to others. This applies to both property damage and bodily injury. Unlike third-party liability insurance for your car or motorcycle, personal liability insurance is not mandatory in the Netherlands, but it is wise to have it. In fact, most Dutch households have it.

There are actually two types of liability coverage worth understanding: personal liability and property liability. They’re related, but they cover different things. Here’s how they break down.

Personal liability: when it’s something you did

Personal liability (AVP) covers damage you accidentally cause to other people or their property, as a private individual. If you, your partner, your kids, or your pets cause damage to someone else, this is the coverage that steps in.

Here are some common situations:

Bodily injury

• You accidentally ride your bike into someone, causing them to break their arm.
• Your dog gets startled and bites a passerby on the street.

Property damage

• While playing soccer, your son misses the goal and accidentally “scores” through your neighbor’s window.
• You spill red wine on your mother-in-law’s couch.
• You break a friend’s vase while visiting their home.

If someone holds you liable, your insurer checks whether the claim is justified. If not, they defend you, and if necessary, even in court. If you are responsible, they pay the costs.

Property liability: when it’s something your home did

Property liability is a little different. It covers situations where your property itself causes damage or injury to others, even if you didn’t do anything directly wrong.

As a homeowner, you’re legally responsible for keeping your property in a safe condition. If you don’t, and someone gets hurt or their property is damaged as a result, you can be held liable.

Some common examples:

• A roof tile comes loose during a storm and damages your neighbor’s car.
• Your garden fence blows over and injures someone walking past.
• A dead branch falls from a tree in your yard and hits a passerby.
• Someone slips on your icy front path because you didn’t salt it.

The key difference from personal liability is that no specific action on your part is required. It’s about the state of your property and the risk it presents to others.

Important: Property liability coverage with Lemonade is only available to homeowners with a Lemonade Buildings insurance policy. If you’re a renter, your personal liability policy covers you as an individual, but not for risks arising from the building itself, that’s the landlord’s responsibility.

What does Lemonade cover?

With Lemonade, your liability insurance covers the following:

Property damage 

Any damage you accidentally cause to someone else’s property.

Bodily injury to others 

Someone slipped and injured themselves at your housewarming party. If that person holds you liable, we’ll check whether the claim is justified, defend you if it comes to that, and pay costs if you’re liable.

Damage to rental accommodation due to fire or water 

We cover damage you accidentally cause to a home or hotel room you rent (including the furniture), if caused by fire, explosion, or water. Note: scuffs and holes in the wall are not covered.

Damage caused by pets 

Your Golden Retriever or Maine Coon probably wouldn’t hurt a fly. But accidents happen, and before you know it, your pet gets startled and bites someone, or your cat shreds the neighbor’s curtains. Damage caused to others by your own pets is covered. We don’t cover damage caused by horses, livestock, or wild animals you own or that are under your permanent care.

Bikes and e-bikes 

More and more expats in the Netherlands are trading in their cars for a bike or e-bike. Very convenient (no more sweaty armpits!), but are you covered for damage you cause while riding? With Lemonade, yes. Motorized vehicles with mandatory insurance requirements, for example mopeds, e-bikes with a maximum speed of more than 25 km/h, e-scooters, and Segways, are not covered. One more thing: fatbike coverage is no longer available for new Lemonade policyholders as of May 2024. If you had a policy before that date, you’re still covered.

Boats and vessels 

Lemonade covers damage caused by small boats or vessels. Coverage does not apply to boats with a sail area of more than 16 m² or with engines of more than 4 HP.

Damage while traveling 

Your Lemonade liability insurance protects you worldwide, as long as your trip lasts less than 3 months. So if you’re on vacation in Venice and accidentally knock over all the snow globes in a souvenir shop, you’re covered.

Property liability (homeowners only) 

If you have a Lemonade Buildings policy, your coverage extends to damage or injury caused by your property itself: a fallen roof tile, a collapsing fence, a dead branch from your garden tree. This is separate from damage to your own home, which is covered under your Buildings insurance.

How much coverage do I need?

You can often choose your own insured amount. With most insurers, you can choose between two amounts: € 1.250.000 or € 2.500.000. So, for example, if someone breaks their arm and you are liable, the medical costs will be covered up to the amount you’ve chosen. If the damage exceeds that amount, the difference comes out of your own pocket.

There’s no perfect answer to how much coverage you need. It depends on how much risk you think you face, and that’s a call only you can make.

Tip: The Consumers’ Association advises insuring yourself for a minimum of € 1.250.000 with a deductible of € 0. The deductible determines how much you pay out of pocket when something happens. Liability insurance usually only costs a few dollars a month, but if you want to lower your premium, you can opt for a higher deductible.

What’s not covered?

This part matters, so read it carefully. In most situations, the following are not covered by your personal liability insurance:

• Intentional damage. Damage you cause deliberately is never covered.
• Rented objects. Furniture or tools you rent for a party or renovation aren’t covered. This is different from rented accommodation, which is covered for fire, explosion, and water damage (see above).
• Borrowed items you damage. If you borrow something from someone and damage it, you’re actually covered up to € 25.000 per event. Good to know.
• Damage covered by another type of insurance. Car, yacht, or professional liability insurance all have their own coverage.
• Property damage between people on the same policy. If you and your partner are covered under the same policy and you accidentally drop and break their smart TV, that’s not covered. That said, bodily injury between people on the same policy is covered.
• Fraud. Any situation involving fraud is excluded.
• Damage caused under the influence. Damage caused under the influence of alcohol or substances, or through unlawful or reckless behavior, is not covered.
• Business or landlord activity. Your liability coverage applies to you as a private individual. If you’re renting out your home as a landlord or conducting business, that’s not covered. Exceptions apply for volunteering, babysitting or tutoring, internships, and paid work as part of your studies.
• Intangible losses. Stress, reputational damage, data loss, and pure financial loss are not covered.
• Property liability without a Buildings policy. Property liability coverage is only available to Lemonade homeowners with a Buildings insurance policy.

Who’s included on your policy?

Most insurers offer different policies for single people and families. Here’s who is normally covered:

Single policy

• You
• Your guests (if they accidentally cause damage to a third party)

Family policy

• You
• Your partner
• Co-habiting family members, including parents-in-law
• Minor children
• Unmarried adult children living at home, or away from home for studies, usually up to age 27

Housemates are not included and will need their own liability insurance.

What about legal protection?

Your liability insurance already includes legal defense at Lemonade’s expense. If someone holds you liable, we check the claim and represent you if it comes to that, at no extra cost.

But what if you need to pursue or defend a broader legal dispute? That’s where Legal Protection comes in. It’s an optional add-on, provided by our partner ARAG SE, that covers you for a wide range of legal disputes, with coverage up to € 15.000 or € 30.000 depending on the plan you choose. There’s a deductible of € 150 per conflict, excluding traffic and criminal cases.

You can add Legal Protection at any time in the Lemonade app. And if you ever have a legal emergency, ARAG is available around the clock at 033 434 23 42.

Can you cancel anytime?

Yes. No lock-in, no cancellation fees. With Lemonade, you can cancel your liability insurance free of charge whenever you want, directly via the app. After you cancel, we’ll refund the unused portion of your premium to your account. If you decide to come back, we’ll simply set up a new policy for you. Please note that you may receive a new premium, as our prices change from time to time.

A policy for the 21st century

With Lemonade’s Policy 2.0, you’re covered by insurance designed for the 21st century: transparent and easy to understand. Maya, our AI assistant, walks you through your options and helps you build the right coverage for your situation in just a few minutes. You can get set up on the Lemonade app or at lemonade.com/nl/en.

When you need to make a claim, open the app and tap “Submit claim.” Your claim will be reviewed by our team as quickly as possible. With a Lemonade policy, you’re part of something bigger. When you get your first policy, you choose a cause you care about, and Lemonade donates to nonprofits supporting those causes. That’s Giveback, and it’s at the heart of how we work.

What are you still waiting for? Get Lemonade insurance in a few seconds!