World’s First Open Source Insurance Policy

Policy 2.0 is a radically simplified, modernized, and digitized insurance policy. It’s open source, so we’d love everyone to contribute to and benefit from it.

WHY WE CREATED POLICY 2.0

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Welcome to Lemonade!

We promise to do our best to make sure you love it here!

QR Code Lemonade Policy 2.0

Scan this with your phone, or click on it, to view your policy online, make changes, and file claims.

Copyright Lemonade Inc. 2018. Copyleft, GNU Free Documentation License

The Squeezed Version

Congratulations! You got yourself a Lemonade Renters Insurance Policy for your home at 5 Crosby St. 3rd floor, New York, NY 10013. Your policy number is LP234F32.

We want to make sure you know what you’re getting for your $5.20 per month, so we did our best to make this policy short and sweet.

Please take a few minutes to read through, and let us know if you have any questions. You can always change coverages, add valuable items, and more.

Who’s covered?

This policy covers Jane Doe. You can add more people, as long as they permanently live at 5 Crosby Street.

When?

This policy covers events that started after March 12, 2017 at 1:30pm, and before March 12, 2018, 1:30pm.

Against what?

We protect you against theft, vandalism, fire, smoke, burst pipes, appliance leaks, and damage others may accuse you of causing. There are important limitations, though, so please read on.

For how much?

We provide coverage up to a certain limit. Here is a quick overview of the limits you chose (and can change):

  • Damage or theft of your stuff, up to $10,000 in total, and $2,500 per item.
  • Temporary living expenses if your home becomes unlivable, up to $2,500.
  • Damage to other people, up to $100,000

These amounts indicate the maximum we will reimburse you, in total, per year - even if the losses you suffer are larger.

So take a minute to imagine the stuff belonging to everyone on the policy going up in flames tomorrow (ouch). Remember to include everyone's clothes, furniture, jewelry, cameras, laptops, and phones.

If $10,000 isn’t enough to cover everything, please increase your total coverage. And if you own any valuable items worth more than $2,500, be sure to add them to your policy so they’re covered for their full amount.

Used or new?

We will pay you the cost to repair or replace an item with one of the same make and model. If the exact item is not available, we’ll pay enough to buy something equivalent. We don’t pay less just because your damaged item was used.

And now, 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 by a fire, a burst pipe, or theft or vandalism.

We don’t cover cash, assault weapons, stuff that’s used for your business, or things that you willingly handed over to someone else to look after.

What’s not covered

This policy covers your stuff, up to a limit of $10,000 per year, for damages caused by fire or smoke, theft or vandalism, burst pipes or appliance leaks. Everything else, 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,” or “I had a wardrobe malfunction,” aren’t covered. You can add coverage for some of these here.

Items worth up to $2,500 are covered automatically, but we won’t pay more per item unless they’ve been added individually. So please let us know if you have jewelry, cameras, or other valuables worth more than $2,500 each, so we can cover them fully.

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 your stuff anywhere in the world, as long as it is normally kept at your home. Stuff that lives at your summer house, office, or in a storage unit, is not covered. You can add coverage for some of these here.

We cover stuff you own and have in your possession. If you willingly handed your things to someone else, they’re responsible. So if your stuff was damaged during shipping, at the dry cleaners, while on loan to a friend, or never came off your flight to Hawaii - it’s not covered.

We don’t cover stuff that’s usually covered by other types of insurance policies such as auto, travel, pet, or business. So damage to your car, injuries to your pet, or damage to stuff used for business such as your work laptop, professional camera gear, and so on, aren’t covered. You can add coverage for some of these here.

Assault weapons (as defined by the Federal Assault Weapons Ban of 1994) are not covered. Other licensed firearms are covered, as long as they are stored securely and used responsibly.

We do not cover intentional damage by you, nor losses that could have been foreseen or prevented by you through reasonable steps. So if damage like this has happened before and you haven’t fixed the problem fully, that’s on you.

We don't cover damage caused by illegal activity by someone listed on this policy, nor property that is illegal for you to own.

If your home becomes unlivable

Theft, vandalism, fires, and burst pipes in your building can make it unlivable. If any of these happen, we’ll help.

We will pay for reasonable increased living costs caused due to theft, vandalism, fire, smoke, burst pipes or appliance leaks in your building, or mandatory evacuation of your building. We’ll cover costs of an AirBnB or hotel accommodation while your home remains unlivable, up to $2,500 per year. If you’d like more coverage, you can increase it here.

What’s not covered

All other things that make your home unlivable are not covered. So if your flight got canceled, your neighbors are noisy, your heating or AC is broken, your power failed, the water supply stopped, or your home is infested with bedbugs or other wildlife, you’re not covered.

And just like damage to your stuff, we do not cover you if the damage was intentional, foreseeable or preventable by you, or relates to illegal activity by you.

If you accidentally damage or injure others

This policy protects you if someone claims you’ve caused them bodily injury or property damage.

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 $100,000 per year. You can increase that here.

Since we’re paying, we may investigate, settle, or contest the complaint as we judge best.

What’s not covered

We cover claims of bodily injury or property damage, not stress, mental anguish or reputational damage.

Damages covered by other types of insurance (such as auto, boat, or professional liability insurance), aren’t covered by this one.

Damage caused by drones, other flying machines or motorized vehicles of any kind (such as electric bikes, segways, or electric skateboards) aren’t covered.

We cover fire damage to your apartment, but other damage to the unit you rent (like scratched floors) isn’t covered. That’s what the security deposit is for.

We don’t cover damage caused by assault weapons (as defined by the Federal Assault Weapons Ban of 1994). Harm caused by other licensed firearms is covered, as long as they were stored securely and used responsibly.

Damage that’s related, or similar to, something you’ve been accused of in the past ten years (e.g. your dog has bitten before) isn’t covered.

We don’t cover damage caused intentionally, or as a result of illegal activity, by anyone listed on the policy.

Oh, wait, there’s more coverage where this came from…

Add Bad Weather Package

You can add coverage for damages caused by hail, snow, wind, and heavy rains.
Add our bad weather coverage

Add Electronic Devices Package

Our phones, laptops, and iPads have become an integral part of our lives, but they’re easily damaged. We offer a special coverage to protect those devices against things like spilled coffee, falling, and shattering, etc.
Add complete device coverage

Add Earthquake Package

We provide additional coverage against earthquakes that damage your stuff.
Add earthquake coverage

Add Water Backup Package

It turns out sewage systems sometimes get disoriented and back up into your apartment (yuck). We provide coverage for this unfortunate situation as well.
Add water backup coverage

And more...

See a complete list of additional coverages on offer, and sign up for notifications when more become available.

Your participation if something bad happens

AKA your ‘deductible.’ It is now set to $500.

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 an approved 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 the $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 payments. 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 promptly of any damage or loss.

Call the authorities (e.g. police, fire department, or emergency medical services) or other people in a position to help (e.g. landlords or apartment managers).

Take reasonable steps to 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 associated costs 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).

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 for high value items).

We may ask you to submit to examination under oath, or provide evidence or affidavits 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.

This is important ...

Failure to provide complete and truthful information at all times, including prior to the purchase of the policy or following a loss, or to comply with the above obligations, will be considered a breach of contract, and will void your coverage.

We may also be obligated to report it to federal and state authorities.

Some technical stuff, then we’re done!

Changes & Additions

If you request and we approve changes during the year, we will send you a new policy. That policy will apply from that point to the original expiration date.

Cancellation & Renewal

Your policy is for a year and will automatically renew until it is canceled by you or by us.

If we choose to cancel or not renew this policy, we’ll notify you at [email protected] We will provide at least 10 days notice so you can get a new policy. If that’s not your email, you can change it here.

You are free to cancel your policy at any time, and we will return any leftover part of your paid premiums. 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 try to reach you at the email you provided. If you do not pay within 10 days of the due date, your policy will be canceled immediately.

Arbitration & Complaints

We hope we never have any disagreements, and prefer to settle disagreements in the most collaborative way possible. For this reason, both you and us commit that disagreement related to this contract will be settled by arbitration, administered by the American Arbitration Association, in accordance with its Commercial Arbitration Rules, and judgment by the arbitrator may be entered in any court of appropriate jurisdiction.

Alternatively, if you’d like to make a complaint, please contact us.

When someone else caused your damage

‘Subrogation’ is a fancy term for when ‘someone else is responsible for your loss.’ If we pay you for a loss under this policy, then you give us the right to pursue the responsible party to recover what we can. If we recover enough money from them, we’ll even send you back part of your deductible.

We can’t promise we’ll collect, but you give us the right to try. 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!

Clarifications Required By The Great State of [State]

Your state is a very special place, and it asked that we clarify the following...

Well, look who made it here! Congrats!

We’re so happy you made it to the end. Thanks!

Hopefully this all made sense and you feel good about your coverage. Please contact us if anything remains unclear, or if you need more coverage than this agreement provides.

We wish you a charmed year, but should you encounter any bumps along the way, we’ll do our best to smooth them out. After all, when life gives you lemons…

Sincerely,

Daniel, Shai, and the Lemonade Team

5 Crosby St. 3rd floor, New York, NY 10013
Lemonade.com
[email protected]
+1 (844) 733-8666‬

Updated as of May 28, 2018. Check out the latest version on Github