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 31 May 2023 at 15:14, 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, looting, windstorms, hail, local heavy rainfall, collision by vehicles or aircraft, falling objects (e.g. trees, cranes), and glass shards. Your stuff is also covered against water damage caused by burst or blocked pipes, leaking appliances connected to water pipes (e.g. your washing machine), or leaking waterbeds and aquariums.
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 traveling anywhere in the world (as long as your trip abroad is less than 3 months!).
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 € 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.
If you accidentally 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 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. 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 stuff that belongs to your business or items 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, looting, windstorm, hail, local heavy rainfall, collision by vehicles or aircraft, falling objects (e.g. trees, cranes), and glass shards. We also cover your stuff against water damage caused by burst or blocked pipes, leaking appliances connected to water pipes, or leaking waterbeds and aquariums.
Your stuff is also covered against theft, as long as you have taken reasonable care to protect it. So if your mobile phone or your bicycle gets stolen while outside your home, you’re covered. Just remember to not leave your phone unattended, and to lock up your bicycle with an ART-approved lock (category 2 stars), otherwise they 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, looting, windstorm, hail, local heavy rainfall, collision by vehicles or aircraft, falling objects (e.g. trees, cranes), glass shards and and water damage caused by burst or blocked pipes, leaking appliances connected to water pipes, or leaking waterbeds and aquariums.
We cover the food in your refrigerator and freezer, if it has gone bad due to a power outage.
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.
We also cover reasonable and necessary costs arising from covered damages, to protect your stuff (e.g. experts and counter experts to assess the damage, 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,” “I dropped my phone,” “my computer died,” “I found bed bugs in my mattress”, “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), or which form part of a collection of rare or unique things, are considered a single item.
We only cover your physical stuff. Intangible things like your health, reputation, identity, data, lost wages, privacy and credit rating are not covered.
We don’t cover financial instruments (including cryptocurrency, NFTs and stocks), but we cover money up to € 600 per event if lost due to a burglary or fire inside your home.
We cover home office equipment that belongs to you, but won’t cover any business equipment that’s owned by your company or the company you work for, such as your work laptop.
We don't cover property that is illegal for you to own, nor any firearms.
We don’t cover damage to motorized vehicles with compulsory insurance requirements (e.g. cars, mopeds, high speed e-bikes with a maximum speed above 25 km/h, e-scooters).
We also don’t cover any costs, if your pet develops an illness, needs medical care, or gets into a car accident.
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 are not covered. We make an exception for medical equipment you borrow (e.g. crutches, or a wheelchair), but not hearing aids. 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 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, this is not covered. We also don’t cover damage as a result of your recklessness or evident negligence (e.g. not closing your windows or doors while away from home, or not fixing a leak that you were aware of) or poor maintenance (e.g. not clearing your gutters).
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, incorrect use 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 earthquakes, landslides, or groundwater.
We don’t cover damage due to flooding, like the overflow or breaking of dikes or other flood defenses.
We cover damage caused by local heavy rainfall which means 40mm of rain in 24 hours, 53mm in 48 hours or 67mm in 72 hours, including damage due to overflows of ditches, canals and quays.
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 property 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 € 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 also cover specific situations where you cause damage, but may not be legally liable. If you cause damage while providing unpaid assistance (e.g. helping a friend move), to a spectator during sports or games, or if your child or pet causes damage while under someone else’s unpaid supervision, you’re covered.
We cover damages to items that you temporarily borrow, use or store up to € 25.000 per event.
We offer depreciated replacement value for property damage you cause to someone else. This means we will pay the cost to repair or replace their item (whichever is lower) taking into account that it has been used, unless a right for higher compensation applies under statutory liability principles.
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 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 the home or hotel you rent (including rented furnishings), if caused by fire, explosion, 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 cover damage you cause with your bicycle or electric bike. Damage caused when using motorized vehicles subject to compulsory insurance requirements (e.g. cars, mopeds, e-bikes with a maximum speed above 25 km/h, e-scooters) 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.
For motorized vehicles and boats that we don’t cover, we make an exception if your child under 18 causes damage while joyriding or joysailing with someone else’s vehicle or boat, which has been taken by force. We don’t cover theft, but damage to the vehicle or boat itself is covered up to € 25.000 per event.
We cover damage caused by the use of lightweight drones or model airplanes. But we don’t cover motorized aircraft weighing more than 25kg, or damage caused while you are flying them illegally.
We cover damage caused by most small pets, but 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 firearms.
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 caused by intentional acts or inaction, such as unlawful behavior that you have committed, where the damage is an expected consequence of your actions. This includes while under the influence of alcohol or other substances, or where the damage was actually caused by someone else in your group.
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, 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!
Cancelation and renewal
Our policies renew automatically on a monthly basis. Your policy will remain active until it is canceled 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 cancelation 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 canceled 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!
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 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 the Netherlands. After one month, protection for your stuff 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 Agency B.V. on behalf of the insurer Lemonade Insurance N.V.
Korte Leidsedwarsstraat 12-16, 1017 RC
Amsterdam, The Netherlands
*Based on our US open source insurance policy which can be found on Github