Lemonade (LMND) 10-Q 12 Aug 20 2020 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2020	Aug. 12, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-39367
Entity Registrant Name	Lemonade, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	32-0469673
Entity Address, Address Line One	5 Crosby Street, 3rd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10013
City Area Code	844
Local Phone Number	733-8666
Title of 12(b) Security	Common Stock, $0.00001 par value per share
Trading Symbol	LMND
Security Exchange Name	NYSE
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		56,576,808
Amendment Flag	false
Entity Central Index Key	0001691421
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Investments
Debt Securities, Available-for-sale	$ 6.7	$ 5.9
Short-term investments	29.9	54.7
Total investments	36.6	60.6
Cash, cash equivalents and restricted cash	258.8	270.3
Premium receivable, net of allowance for doubtful accounts of $0.4 million and $0.2 million as of June 30, 2020 and December 31, 2019	64.9	54.1
Reinsurance recoverable	26.2	20.3
Prepaid reinsurance premium	0	1
Deferred acquisition costs	2.5	1.8
Property and equipment, net	4.3	3.1
Intangible assets	0.6	0.6
Other assets	6	2.5
Total assets	399.9	414.3
Liabilities, Convertible Preferred Stock and Stockholders' Deficit
Unpaid losses and loss adjustment expense	35.3	28.2
Unearned premium	86.9	68
Trade payables	0.6	0.7
Other liabilities and accrued expense	18.5	19.7
Total liabilities	141.3	116.6
Commitments and contingencies (Note 15)
Convertible preferred stock (Series Seed, A, B, C and D), $0.00001 par value; 31,557,107 shares authorized, issued and outstanding as of June 30, 2020 and December 31, 2019, respectively; aggregate liquidation preference of $480.8 million as of June 30, 2020	480.2	480.2
Stockholders' deficit:
Common stock, $0.00001 par value, 52,000,000 shares authorized as of June 30, 2020 and December 31, 2019, respectively; 12,369,701 shares and 11,784,765 shares issued and 12,369,701 shares and 11,271,228 shares outstanding as of June 30, 2020 and December 31, 2019, respectively	0	0
Additional paid-in capital	33.9	15.7
Accumulated deficit	(255.8)	(198.3)
Accumulated other comprehensive income	0.3	0.1
Total stockholders' deficit	(221.6)	(182.5)
Total liabilities, convertible preferred stock and stockholders' deficit	$ 399.9	$ 414.3

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Amortized cost, available-for-sale securities	$ 6.5	$ 5.8
Premium receivable, allowance for doubtful accounts	$ 0.4	$ 0.2
Convertible preferred stock, par value (usd per share)	$ 0.00001	$ 0.00001
Convertible preferred stock, authorized (shares)	31,557,107	31,557,107
Convertible preferred stock, issued (shares)	31,557,107	31,557,107
Convertible preferred stock, outstanding (shares)	31,557,107	31,557,107
Convertible preferred stock, liquidation preference	$ 480.8	$ 480.8
Common stock, par value (usd per share)	$ 0.00001	$ 0.00001
Common stock, authorized (shares)	52,000,000	52,000,000
Common stock, issued (shares)	12,369,701	11,784,765
Common stock, outstanding (shares)	12,369,701	11,271,228

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue
Net earned premium	$ 29.2		$ 13.3		$ 54.5	$ 23.8
Ceding commission income	0.4		0		0.4	0
Net investment income	0.2		0.5		1.1	1
Commission income	0.1		0		0.1	0
Total revenue	29.9		13.8		56.1	24.8
Expense
Loss and loss adjustment expense, net	20.5		9.9		38.7	17.8
Other insurance expense	4		2.2		7.3	4.1
Sales and marketing	16.1		19		35.3	37.4
Technology development	4.2		2.1		7.7	3.6
General and administrative	5.8		3.6		24	6.4
Total expense	50.6		36.8		113	69.3
Loss before income taxes	(20.7)		(23)		(56.9)	(44.5)
Income tax expense	0.3		0.1		0.6	0.2
Net loss	(21)	$ (36.5)	(23.1)	$ (21.6)	(57.5)	(44.7)
Other comprehensive income, net of tax
Unrealized gain on investments	0.2	$ 0	0	$ 0	0.2	0
Comprehensive loss	$ (20.8)		$ (23.1)		$ (57.3)	$ (44.7)
Per Share Data:
Net loss per share attributable to common stockholders—basic and diluted (usd per share)	$ (1.77)		$ (2.09)		$ (4.89)	$ (4.05)
Weighted average common shares outstanding—basic and diluted (shares)	11,891,979		11,072,985		11,750,198	11,028,667

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Beginning balance (shares) at Dec. 31, 2018	24,445,555
Beginning balance at Dec. 31, 2018	$ 180.8
Convertible Preferred Stock
Issuance of Preferred stock (shares)	3,622
Ending balance (shares) at Mar. 31, 2019	24,449,177
Ending balance at Mar. 31, 2019	$ 180.8
Beginning balance (shares) at Dec. 31, 2018		10,983,684
Beginning balance at Dec. 31, 2018	(79.1)	$ 0	$ 10.7	$ (89.8)	$ 0
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)		3,125
Stock-based compensation	0.4		0.4
Net loss	(21.6)			(21.6)
Other comprehensive income (loss)					0
Ending balance (shares) at Mar. 31, 2019		10,986,809
Ending balance at Mar. 31, 2019	$ (100.3)	$ 0	11.1	(111.4)	0
Beginning balance (shares) at Dec. 31, 2018	24,445,555
Beginning balance at Dec. 31, 2018	$ 180.8
Ending balance (shares) at Jun. 30, 2019	28,595,471
Ending balance at Jun. 30, 2019	$ 355.2
Beginning balance (shares) at Dec. 31, 2018		10,983,684
Beginning balance at Dec. 31, 2018	(79.1)	$ 0	10.7	(89.8)	0
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Net loss	(44.7)
Ending balance (shares) at Jun. 30, 2019		11,084,434
Ending balance at Jun. 30, 2019	$ (122.7)	$ 0	11.8	(134.5)	0
Beginning balance (shares) at Mar. 31, 2019	24,449,177
Beginning balance at Mar. 31, 2019	$ 180.8
Convertible Preferred Stock
Issuance of Preferred stock (shares)	4,146,294
Issuance of preferred stock, net of issuance costs	$ 174.4
Ending balance (shares) at Jun. 30, 2019	28,595,471
Ending balance at Jun. 30, 2019	$ 355.2
Beginning balance (shares) at Mar. 31, 2019		10,986,809
Beginning balance at Mar. 31, 2019	(100.3)	$ 0	11.1	(111.4)	0
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)		97,625
Exercise of stock options	0.3		0.3
Stock-based compensation	0.4		0.4
Net loss	(23.1)			(23.1)
Other comprehensive income (loss)					0
Ending balance (shares) at Jun. 30, 2019		11,084,434
Ending balance at Jun. 30, 2019	$ (122.7)	$ 0	11.8	(134.5)	0
Beginning balance (shares) at Dec. 31, 2019	31,557,107
Beginning balance at Dec. 31, 2019	$ 480.2
Ending balance (shares) at Mar. 31, 2020	31,557,107
Ending balance at Mar. 31, 2020	$ 480.2
Beginning balance (shares) at Dec. 31, 2019	11,271,228	11,271,228
Beginning balance at Dec. 31, 2019	$ (182.5)	$ 0	15.7	(198.3)	0.1
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)		54,374
Stock-based compensation	2.2		2.2
Contribution to the Lemonade Foundation (shares)		500,000
Contribution to the Lemonade Foundation	12.2		12.2
Net loss	(36.5)			(36.5)
Other comprehensive income (loss)					0
Ending balance (shares) at Mar. 31, 2020		11,825,602
Ending balance at Mar. 31, 2020	$ (204.6)	$ 0	30.1	(234.8)	0.1
Beginning balance (shares) at Dec. 31, 2019	31,557,107
Beginning balance at Dec. 31, 2019	$ 480.2
Ending balance (shares) at Jun. 30, 2020	31,557,107
Ending balance at Jun. 30, 2020	$ 480.2
Beginning balance (shares) at Dec. 31, 2019	11,271,228	11,271,228
Beginning balance at Dec. 31, 2019	$ (182.5)	$ 0	15.7	(198.3)	0.1
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)	84,936
Net loss	$ (57.5)
Ending balance (shares) at Jun. 30, 2020	12,369,701	12,369,701
Ending balance at Jun. 30, 2020	$ (221.6)	$ 0	33.9	(255.8)	0.3
Beginning balance (shares) at Mar. 31, 2020	31,557,107
Beginning balance at Mar. 31, 2020	$ 480.2
Ending balance (shares) at Jun. 30, 2020	31,557,107
Ending balance at Jun. 30, 2020	$ 480.2
Beginning balance (shares) at Mar. 31, 2020		11,825,602
Beginning balance at Mar. 31, 2020	(204.6)	$ 0	30.1	(234.8)	0.1
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)		30,562
Exercise of stock options	0.1		0.1
Stock-based compensation	2.4		2.4
Release of shares upon repayment (shares)		513,537
Release of shares upon repayment	1.3		1.3
Net loss	$ (21)			(21)
Other comprehensive income (loss)					0.2
Ending balance (shares) at Jun. 30, 2020	12,369,701	12,369,701
Ending balance at Jun. 30, 2020	$ (221.6)	$ 0	$ 33.9	$ (255.8)	$ 0.3

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT (Parenthetical) $ in Millions	3 Months Ended
	Jun. 30, 2019USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance costs	$ 0.6

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net loss	$ (57.5)	$ (44.7)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	0.7	0.1
Stock-based compensation	4.6	0.8
Amortization of discount on bonds	(0.3)	0
Bad debt expense	0.9	0
Noncash interest	0	(0.3)
Common share contribution to the Lemonade Foundation	12.2	0
Changes in operating assets and liabilities:
Premium receivable	(11.6)	(13)
Reinsurance recoverable	(5.9)	(5.4)
Prepaid reinsurance premium	1	1.5
Deferred acquisition costs	(0.7)	(0.2)
Other assets	(3.5)	(2.9)
Unpaid loss and loss adjustment expense	7.1	7.6
Unearned premium	18.9	16.2
Trade payables	0.1	(0.2)
Other liabilities and accrued expense	(1.3)	2.8
Net cash used in operating activities	(35.3)	(37.7)
Cash flows from investing activities:
Proceeds from short-term investments sold or matured	40	6
Proceeds from bonds sold or matured	2.2	0
Cost of short-term investments acquired	(14.9)	(14.8)
Cost of bonds acquired	(2.9)	(2.3)
Purchases of property plant and equipment	(1.9)	(1.4)
Net cash provided by (used in) investing activities	22.5	(12.5)
Cash flows from financing activities:
Proceeds from release of shares upon repayment	1.3	0
Issuance of Preferred stock, net	0	174.4
Proceeds from stock exercises	0.1	0.3
Net cash provided by financing activities	1.4	174.7
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(0.1)	0
Net (decrease) increase in cash, cash equivalents and restricted cash	(11.5)	124.5
Cash, cash equivalents and restricted cash at beginning of period	270.3	102.4
Cash, cash equivalents and restricted cash at end of period	258.8	226.9
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 0.8	$ 0

Nature of the Business

Nature of the Business	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of the Business	Nature of the BusinessLemonade, Inc. is a public benefit corporation organized under Delaware law on June 17, 2015. It provides certain personnel, facilities and services to each of its subsidiaries (together with Lemonade, Inc., the “Company”), all of which are 100% owned, directly or indirectly, by Lemonade, Inc. The Company consists of the following entities, which support Lemonade, Inc.’s U.S. and E.U. operations: (1) Lemonade Insurance Company, an insurance corporation organized under New York law; this company issues insurance policies and pays claims; it is licensed and regulated as a stock property and casualty insurance company in New York and in all other states where the Company’s insurance products are available; (2) Lemonade Insurance Agency, LLC, a limited liability company organized under New York law; this company is licensed as an insurance agent in New York and in all other states where the Company’s insurance products are available and it acts as the distribution and marketing agent for Lemonade Insurance Company and provides certain underwriting and claims services, and receives a fixed percentage of premium for doing so; it also acts as agent for other insurance companies in distributing their insurance, for which it receives various percentages of premium; (3) Lemonade Ltd., a company organized under the laws of Israel; this company provides technology, research and development, management, marketing and other services to the companies in the group, charged on a ‘‘cost plus’’ basis; (4) Lemonade Insurance N.V., a public limited company organized under the laws of the Netherlands; (5) Lemonade Agency B.V., a Netherlands private limited liability company; (6) Lemonade B.V., a Netherlands private limited liability company; and (7) Lemonade Life Insurance Agency, LLC, a limited liability company formed in Delaware to act as the distribution and marketing agent for the sale and servicing of life insurance products.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All material inter-company transactions and balances have been eliminated upon consolidation. All foreign currency amounts in the statement of operations and comprehensive loss have been translated using an average rate for the reporting period. The Company translates all monetary assets and liabilities denominated in foreign currencies into U.S. dollars using the exchange rates in effect at the balance sheet dates and other assets and liabilities using historical exchange rates. All figures expressed, except share amounts, are represented in U.S. dollars in millions. Risk and Uncertainties The global pandemic resulting from the disease known as COVID-19, caused by a novel strain of coronavirus, SARS-CoV-2, has caused national and global economic and financial market disruptions and may adversely impact our business. Although the Company did not see a material impact on its net earned premium in the three and six month periods ended June 30, 2020 due to the COVID-19 pandemic, the Company cannot predict the duration or magnitude of the pandemic or the full impact that it may have on the Company’s financial condition and results of operations, business operations, and workforce. Unaudited interim financial information In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in stockholders’ equity (deficit) and cash flows. The condensed consolidated balance sheet at December 31, 2019, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the fiscal year ended December 31, 2019 contained in the Company’s final prospectus for its initial public offering of its common stock ("IPO") dated as of July 1, 2020 and filed with the SEC pursuant to Rule 424(b)(4) on July 2, 2020.

Use of Estimates

Use of Estimates	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	Use of EstimatesThe preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates estimates, including those related to contingent assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the reporting period. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, reinsurance recoverables on unpaid losses, and the fair values of investments.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Cash, cash equivalents and restricted cash The following represents the Company’s cash, cash equivalents and restricted cash as of June 30, 2020 and December 31, 2019 ($ in millions): As of June 30, December 31, 2020 2019 Cash and cash equivalents $ 258.5 $ 270.0 Restricted cash 0.3 0.3 Total cash, cash equivalents and restricted cash $ 258.8 $ 270.3 Cash consists primarily of cash on hand and bank deposits. Cash equivalents consist primarily of money market accounts with maturities of three months or less at the date of acquisition and are stated at cost, which approximates fair value. The Company’s restricted cash relates to security deposits for office leases in Israel. The carrying value of restricted cash approximates fair value. Deferred offering costs The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded as a reduction to the carrying value of stockholders' equity (deficit) as a reduction of additional paid-in capital generated as a result of such offering. Should an in-process equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the condensed consolidated statements of operations and comprehensive loss. As of June 30, 2020, the Company recorded deferred offering costs of $2.8 million within other assets in the accompanying condensed consolidated balance sheets. Recent accounting pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. Recently issued accounting pronouncements In February 2016, the FASB issued Leases (Topic 842) (“ASU 2016-02”), whereby lessee will be required to recognize for all leases at the commencement date a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. ASU 2016-02 is effective for the Company’s annual periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The adoption of the new standard is expected to result in the recognition of additional lease liabilities and right-of-use assets as of January 1, 2022. The Company is evaluating the potential impact of this pronouncement. In June 2016, the FASB issued Financial Instruments — Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity debt securities, premium receivables, and reinsurance recoverable. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. ASU 2016-13 requires a valuation allowance to be calculated on these financial assets, as well as available for sale securities, and that they be presented on the financial statements net of the valuation allowance. ASU 2016-13 is effective for the Company’s annual periods beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2016-13 on its financial condition and results of operations, with a primary focus on its reinsurance recoverable.

Investments

Investments	6 Months Ended
	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Investments	Investments Unrealized gains and losses The following tables present cost or amortized cost and fair values of investments as of June 30, 2020 and December 31, 2019 ($ in millions): Cost or Amortized Cost Gross Fair Gains Losses June 30, 2020 U.S. Government obligations $ 6.5 $ 0.2 $ — $ 6.7 Total $ 6.5 $ 0.2 $ — $ 6.7 December 31, 2019 U.S. Government obligations $ 5.8 $ 0.1 $ — $ 5.9 Total $ 5.8 $ 0.1 $ — $ 5.9 Gross unrealized gains for U.S. Government obligations were $0.2 million and $0.1 million, as of June 30, 2020 and December 31, 2019, respectively. There were no gross unrealized losses as of June 30, 2020. Gross unrealized losses were less than $0.1 milion as of December 31, 2019. Gross unrealized gains and losses were recorded as a component of accumulated other comprehensive income. Contractual maturities of bonds The following table presents the cost or amortized cost and estimated fair value of bonds as of June 30, 2020 by contractual maturity ($ in millions). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of June 30, 2020 Cost or Fair Value Due in one year or less $ 0.1 $ 0.1 Due after one year through five years 6.4 6.6 Due after five years through ten years — — Due after ten years — — Total $ 6.5 $ 6.7 Net investment income An analysis of net investment income follows ($ in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Interest on cash and cash equivalents $ 0.1 $ 0.4 $ 0.8 $ 0.8 Short-term investments 0.1 0.1 0.3 0.2 Total net investment income $ 0.2 $ 0.5 $ 1.1 $ 1.0 Investment gains and losses The Company did not have any pre-tax net realized capital gains or losses for the three and six months ended June 30, 2020 and 2019. Aging of gross unrealized losses There were no gross unrealized losses and related fair values for the Company's available-for-sale bond securities as of June 30, 2020. The following table presents the gross unrealized losses and related fair values for the Company’s available-for-sale bond securities, grouped by duration of time in a continuous unrealized loss position, as of December 31, 2019 ($ in millions): Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2019 U.S. Government obligations $ 0.2 $ — $ 2.2 $ — $ 2.4 $ — Total $ 0.2 $ — $ 2.2 $ — $ 2.4 $ — There were no gross unrealized losses incurred for U.S. Government Bonds for twelve months or more as of June 30, 2020. Gross unrealized losses for U.S. Government Bonds was less than $0.1 million for twelve months or more as of December 31, 2019. The gross unrealized investment losses as of June 30, 2020 and December 31, 2019, were deemed to be temporary, based on, among other things: • the duration of time and the relative magnitude to which fair values of these investments have been below their amortized cost was not indicative of an other than temporary impairment loss; • the absence of compelling evidence that would cause the Company to call into question the financial condition or near-term prospects of the issuer of the investment; and • the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. The Company may ultimately record a realized loss after having originally concluded that the decline in value was temporary. Risks and uncertainties are inherent in the methodology the Company uses to assess other-than-temporary declines in value. Risks and uncertainties could include, but are not limited to, incorrect assumptions about financial condition, liquidity or future prospects, inadequacy of any underlying collateral, and unfavorable changes in economic conditions or social trends, interest rates or credit ratings. As of June 30, 2020, the Company held a total of 7 debt securities, none of which were in an unrealized loss position continuously for 12 months or more. As of December 31, 2019, the Company held a total of 9 debt securities, 4 of which were in an unrealized loss position, continuously for 12 months or more.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured as of June 30, 2020 and December 31, 2019 ($ in millions): Fair Value Measurements as of June 30, 2020 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 6.7 $ — $ 6.7 Total $ — $ 6.7 $ — $ 6.7 Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 5.9 $ — $ 5.9 Total $ — $ 5.9 $ — $ 5.9 There were no transfers between Level 1, Level 2, or Level 3 during the three and six months ended June 30, 2020 and 2019.

Unpaid Loss and Loss Adjustment

Unpaid Loss and Loss Adjustment Expense ("LAE")	6 Months Ended
	Jun. 30, 2020
Insurance [Abstract]
Unpaid Loss and Loss Adjustment Expense ("LAE")	Unpaid Loss and Loss Adjustment Expense (“LAE”) The following table presents the activity in the liability for unpaid loss and LAE in the six months ended June 30, 2020 and 2019 ($ in millions): Six Months Ended 2020 2019 Unpaid loss and LAE at beginning of period $ 28.2 $ 13.1 Less: Reinsurance recoverable at beginning of period (1). 18.5 11.3 Net unpaid loss and LAE at beginning of period 9.7 1.8 Add: Incurred loss and LAE, net of reinsurance, related to: Current year 33.5 15.4 Prior years 5.2 2.4 Total incurred 38.7 17.8 Deduct: Paid loss and LAE, net of reinsurance, related to: Current year 24.4 11.6 Prior years 13.2 4.2 Total paid 37.6 15.8 Unpaid loss and LAE, net of reinsurance recoverable, at end of period 10.8 3.8 Reinsurance recoverable at end of period (1) 24.5 16.9 Unpaid loss and LAE, gross of reinsurance recoverable, at end of period $ 35.3 $ 20.7 (1) Reinsurance recoverable in this table includes only ceded unpaid loss and LAE Unpaid loss and LAE includes anticipated salvage and subrogation recoverable.

Other Liabilities and Accrued E

Other Liabilities and Accrued Expenses	6 Months Ended
	Jun. 30, 2020
Other Liabilities Disclosure [Abstract]
Other Liabilities and Accrued Expenses	Other Liabilities and Accrued Expense Other liabilities and accrued expense consist of the following ($ in millions): As of June 30, December 31, 2020 2019 Ceded premium payable $ 5.5 $ 3.9 Accrued advertising costs 4.3 7.9 Accrued professional fees 3.3 2.8 Employee compensation payable 1.8 1.0 Premium taxes payable 1.3 2.6 Indirect taxes payable 0.8 0.4 Income tax payable 0.7 0.5 Other payables 0.8 0.6 Total other liabilities and accrued expense $ 18.5 $ 19.7

Convertible Preferred Stock

Convertible Preferred Stock	6 Months Ended
	Jun. 30, 2020
Temporary Equity Disclosure [Abstract]
Convertible Preferred Stock	Convertible Preferred Stock As of June 30, 2020 and December 31, 2019, the Company’s certificate of incorporation, as amended and restated, authorized the Company to issue 31,557,107 shares of par value $0.00001 per share convertible preferred stock, respectively. The holders of convertible preferred stock have liquidation rights in the event of a deemed liquidation that, in certain situations, are not solely within the control of the Company. Therefore, the convertible preferred stock is classified outside of stockholders’ equity (deficit) on the condensed consolidated balance sheet. As of each balance sheet date, preferred stock consisted of the following ($ in millions, except for share amounts): As of June 30, 2020 Preferred Preferred Carrying Liquidation Common Stock Series Seed Preferred stock 7,905,140 7,905,140 $ 12.9 $ 13.0 7,905,140 Series A Preferred stock 3,328,774 3,328,774 14.0 13.6 3,328,774 Series B Preferred stock 4,511,417 4,511,417 34.1 34.1 4,511,417 Series C Preferred Stock 8,703,846 8,703,846 119.8 120.1 8,703,846 Series D Preferred Stock 7,107,930 7,107,930 299.4 300.0 7,107,930 31,557,107 31,557,107 $ 480.2 $ 480.8 31,557,107 As of December 31, 2019 Preferred Preferred Carrying Liquidation Common Stock Series Seed Preferred stock 7,905,140 7,905,140 $ 12.9 $ 13.0 7,905,140 Series A Preferred stock 3,328,774 3,328,774 14.0 13.6 3,328,774 Series B Preferred stock 4,511,417 4,511,417 34.1 34.1 4,511,417 Series C Preferred Stock 8,703,846 8,703,846 119.8 120.1 8,703,846 Series D Preferred Stock 7,107,930 7,107,930 299.4 300.0 7,107,930 31,557,107 31,557,107 $ 480.2 $ 480.8 31,557,107

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common stock As of June 30, 2020 and December 31, 2019, the Company was authorized to issue 52,000,000 shares of par value $0.00001 per share common stock, respectively. The voting, dividend and liquidation rights of the holders of the Company’s common stock is subject to and qualified by the rights, powers and preferences of the holders of the preferred stock. On February 18, 2020, the Company made a contribution of 500,000 newly issued shares of common stock to a related party, the Lemonade Foundation (see Note 14).

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-based Compensation	Stock-based Compensation Share option plan In July 2015, the Company adopted the 2015 incentive share option plan and amended and restated the plan on September 4, 2019 (the “2015 Plan”). The 2015 Plan has been amended and restated from time to time to increase the number of shares reserved for grant and to enable the grant of options to employees of the Company’s subsidiaries. Under the 2015 plan, options to purchase Common stock of the Company may be granted to employees, officers, directors and consultants of the Company. Each option granted can be exercised for one share of Common stock of the Company. Options granted to employees generally vest over a period of no more than four years. The options expire 10 years from the date of grant. Pursuant to the 2015 Plan, the Company had reserved 7,312,590 shares of Common stock for issuance. As of June 30, 2020, there were 1,750,178 shares of Common stock available for future grant. Options granted to employees and non-employees The fair value of each option granted during the six months ended June 30, 2020 and 2019 is estimated on the date of grant using the Black-Scholes model with the following assumptions: Six Months Ended 2020 2019 Weighted average expected term (years) 6.1 6.1 Risk-free interest rate 1.0% 2.5% Volatility 40% 50% Expected dividend yield 0% 0% Expected volatility is based on companies at a comparable stage, as well as companies in the same or a similar industry. The expected term of options granted is based on the “Simplified” method, in accordance with ASC 718, “Compensation — Stock Compensation”. The risk-free interest rate is based on observed interest rates appropriate for the term of the Company’s employee stock options. The dividend yield assumption is based on the Company’s historical and expected future dividend payouts and may be subject to substantial change in the future. The following table summarizes activity of stock options ($ in millions, except for option and average amounts): Number of Weighted- Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2019 4,048,802 $ 13.27 8.8 $ 42.2 Granted 707,030 24.41 Exercised (84,936) 2.08 Cancelled (92,376) 20.28 Outstanding as of June 30, 2020 4,578,520 $ 15.06 8.6 $ 43.1 Options exercisable as of June 30, 2020 1,222,898 $ 4.79 7.3 $ 24.1 Options vested and expected to vest as of June 30, 2020 4,578,520 $ 15.06 8.6 $ 43.1 Total stock-based compensation expense resulting from stock options granted to employees and non-employees for the three and six months ended June 30, 2020 were $2.4 million and $4.5 million, respectively and for the three and six months ended June 30, 2019 were $0.4 million and $0.7 million, respectively. In December 2019, the board of directors approved the repricing of the stock options to purchase 1,708,300 shares of common stock held by 198 employees with exercise prices of $26.04 and $28.53 per share to the then current fair value of $23.69 per share. In connection with the repricing of these options, the Company recorded incremental expense of $0.1 million and $0.2 million for the three and six months ended June 30, 2020. The incremental unrecognized expense on these repriced option grants at June 30, 2020 was $1.4 million, with a remaining weighted-average period vesting period of 1.4 years. The total unrecognized expense on options granted to employees and non-employees outstanding at June 30, 2020 was $30.3 million, with a remaining weighted-average vesting period of 1.4 years. Stock-based compensation expense Stock-based compensation expense was classified in the condensed consolidated statements of operations as follows ($ in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Loss and loss adjustment expense, net $ 0.1 $ — $ 0.1 $ — Other insurance expense 0.2 0.1 0.4 0.2 Sales and marketing 0.6 0.1 1.3 0.2 Technology development 0.7 0.1 1.3 0.1 General and administrative 0.8 0.1 1.5 0.3 Total stock-based compensation expense $ 2.4 $ 0.4 $ 4.6 $ 0.8 In 2016 and 2017, the Company entered into stock purchase agreements with two executive employees where in lieu of cash payment for the stock, promissory notes were issued totaling $1.5 million and bearing a weighted average interest of 1.9% per annum, payable to the Company. These notes are secured by the underlying stock purchased and such unvested stock can be repurchased by the Company upon termination of each executive’s employment at the original issuance price. Because the Company only has partial recourse under the promissory notes, the Company deemed the purchase of the stock to be non-substantive. As such, the note receivable is not reflected in the condensed consolidated financial statements and the related stock transaction will be recorded at the time the note receivable is settled in cash. In accordance with ASC 718, the purchases were treated as exercises of stock options with the fair value recognized over the requisite service period through a charge to compensation cost. The maturity date of the promissory notes reflects the legal term of the stock option for purposes of valuing the award. Total stock-based compensation expense resulting from stock options granted to the executives for the three and six months ended June 30, 2020 and 2019 was less than $0.1 million and $0.1 million, respectively. The unrecognized expense on options granted to these executives outstanding at June 30, 2020 was $0.1 million, with a remaining weighted average vesting period of 1.0 year. On June 8, 2020, the Company received $1.3 million in cash from the two executives in full settlement of the outstanding promissory notes, including principal and accrued and unpaid interest.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Effective tax rates The consolidated effective tax rate for the six months ended June 30, 2020 and 2019, was (1.0%) and (0.2%), respectively. The change in effective tax rate over the two periods was predominantly reflective of the change in profit before tax of the Israel entity. The Company believes that as of June 30, 2020, it had no material uncertain tax positions. Interest and penalties related to unrecognized tax expenses (benefits) are recognized in income tax expense, when applicable. There were no material liabilities for interest and penalties accrued as of June 30, 2020.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss per Share Net loss per share Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Three Months Ended June 30, Six Months Ended 2020 2019 2020 2019 Numerator: Net loss attributable to common stockholders ($ in millions) $ (21.0) $ (23.1) $ (57.5) $ (44.7) Denominator: Weighted average common shares outstanding — basic and diluted 11,891,979 11,072,985 11,750,198 11,028,667 Net loss per share attributable to common stockholders — basic and diluted $ (1.77) $ (2.09) $ (4.89) $ (4.05) The Company’s potentially dilutive securities, which include stock options and preferred stock, have been excluded from the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: As of 2020 2019 Options to purchase common stock 4,578,520 2,102,124 Convertible preferred stock (as converted to common stock) 31,557,107 28,595,471 36,135,627 30,697,595 In addition to the potentially dilutive securities noted above, in 2016 and 2017 the Company entered into stock purchase agreements with executive employees where in lieu of cash payment for the stock, promissory notes were issued (see Note 11). The Company determined the purchase of the stock to be non-substantive, and as such, the shares subject to the promissory notes would not be deemed outstanding until such time as the promissory notes have been repaid. Accordingly, the Company excluded these shares in the calculation of basic and diluted net loss per share for the three and six months ended June 30, 2019. On June 8, 2020, all outstanding balances under the promissory notes were paid back to the Company and therefore, these shares were included in the calculation of basic and diluted net loss per share for the three and six months ended June 30, 2020.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company uses the services of a travel agency owned by a relative of one of the Company’s key stockholders. The Company incurred travel related expenses in the amount of approximately less than $0.1 million during the three and six months ended June 30, 2020 and less than $0.1 million and $0.1 million during the three and six months ended June 30, 2019, respectively, in connection with these services. The Company has leased office space in the United States and The Netherlands from an affiliate. The rental expense recorded was less than $0.1 million and $0.1 million for the three and six months ended June 30, 2020, respectively. Rental expense for each of the three and six months ended June 30, 2019 was less than $0.1 million. There were no outstanding amounts due to or from related parties as of June 30, 2020 and December 31, 2019. The Company’s Chief Executive Officer and the Company’s President and Chief Operating Officer, both of whom are also members of the Company’s board of directors, are the two sole members of board of directors of the Lemonade Foundation. During the six months ended June 30, 2020, the Company contributed of 500,000 shares of common stock with a fair market value of $24.36 per share (see Note 10). The Company recorded $12.2 million of non-cash expense within general and administrative expense in connection with this contribution. As of June 30, 2020, the Company had a receivable of $0.1 million from the Lemonade Foundation in connection with certain expenses paid for by the Company on behalf of the Lemonade Foundation.

Commitment and Contingent Liabi

Commitment and Contingent Liabilities	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitment and Contingent Liabilities	Commitments and Contingent Liabilities Litigation The Company is occasionally a party to routine claims or litigation incidental to its business. The Company does not believe that it is a party to any pending legal proceeding that is likely to have a material adverse effect on its business, financial condition or results of operations. Lease commitments The Company and its subsidiaries lease their facilities under various operating lease agreements. The Company’s headquarters in New York is under a lease that expires in November 2022. The Company’s Israel based operations occupy offices with lease expiration dates that extend through January 2023. On March 18, 2019, the Company entered into a lease agreement to lease office space in Scottsdale, Arizona that expires in December 2024. Aggregate minimum rental commitments under non-cancelable leases at June 30, 2020 are as follows ($ in millions): 2020 (remaining six months) $ 1.8 2021 3.4 2022 3.1 2023 0.3 2024 0.3 $ 8.9 Expenses for lease of facilities for the three and six months ended June 30, 2020 were approximately $1.0 million and $1.9 million, respectively and for the three and six months ended June 30, 2019 were approximately $0.7 million and $1.2 million, respectively. Charges and guarantees The Company provided guarantees in an aggregate amount of $0.6 million with respect to office leases as of June 30, 2020 and December 31, 2019, respectively.

Geographical Breakdown of Gross

Geographical Breakdown of Gross Written Premium	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Geographical Breakdown of Gross Written Premium	Geographical Breakdown of Gross Written Premium The Company has a single reportable segment and offers insurance coverage under a single line of business, homeowners multi-peril. Gross written premium by jurisdiction are as follows ($ in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Jurisdiction Amount % of GWP Amount % of GWP Amount % of GWP Amount % of GWP Texas $ 11.8 25.3 % $ 6.7 26.4 % $ 20.6 24.3 % $ 12.0 26.8 % California 9.9 21.2 % 6.4 25.2 % 19.3 22.8 % 11.3 25.3 % New York 5.3 11.3 % 3.6 14.2 % 10.2 12.0 % 6.5 14.5 % Georgia 2.8 6.0 % 1.4 5.5 % 4.9 5.8 % 2.4 5.4 % Illinois 2.6 5.6 % 1.3 5.1 % 4.2 5.0 % 2.1 4.7 % New Jersey 1.6 3.4 % 1.0 3.9 % 3.1 3.7 % 1.9 4.3 % Michigan 1.4 3.0 % 0.5 1.9 % 2.4 2.8 % 1.0 2.2 % Ohio 1.2 2.6 % 0.6 2.4 % 2.2 2.6 % 1.2 2.7 % Arizona 1.1 2.4 % 0.5 2.0 % 1.9 2.2 % 0.9 2.0 % Pennsylvania 1.1 2.4 % 0.6 2.4 % 1.8 2.1 % 1.0 2.2 % All other 7.9 16.8 % 2.8 11.0 % 14.2 16.7 % 4.4 9.9 % $ 46.7 100.0 % $ 25.4 100.0 % $ 84.8 100.0 % $ 44.7 100.0 %

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Initial Public Offering On July 2, 2020, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 12,650,000 shares of its common stock at a public offering price of $29.00 per share, including 1,650,000 shares sold upon the exercise of the underwriter’s option to purchase additional shares. After underwriter discounts and commissions and other offering costs, net proceeds from the IPO were approximately $335.6 million. Offering costs of approximately $3.5 million were recognized as a component of general and administrative expense in 2019. In connection with the IPO, the Company’s outstanding convertible preferred stock converted into shares of common stock (see Note 9) on July 2, 2020. Upon conversion of the convertible preferred stock, the Company reclassified the carrying value of the convertible preferred stock to common stock and additional paid-in capital. Upon closing of the IPO, the Company filed an amended and restated certificate of incorporation on July 7, 2020 with the Secretary of State of the State of Delaware to authorize the issuance of up to 200,000,000 shares of common stock, par value $0.00001 per share, and 10,000,000 shares of undesignated preferred stock, par value $0.00001 per share. 2020 Incentive Compensation Plan On July 2, 2020, the Company’s board of directors adopted and the Company’s stockholders approved the 2020 Incentive Compensation Plan (the “2020 Plan”), which became effective immediately prior to the effectiveness of the registration statement for the Company’s IPO. The 2020 Plan provides for the issuance of incentive stock options, non-qualified stock options, stock awards, stock units, stock appreciation rights and other stock-based awards. The number of shares initially reserved for issuance under the 2020 Plan is 5,503,678 shares, inclusive of available shares previously reserved for issuance under the 2015 Plan. In addition, the number of shares reserved for issuance under the 2020 Plan is subject to an annual increase on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030, equal to the lesser of (A) 5% of the shares outstanding (on an as-converted basis) on the last day of the immediately preceding fiscal year and (B) such smaller number of shares as determined by the Company’s board of directors, provided that no more than 3,650,000 shares may be issued upon the exercise of incentive stock options. 2020 Employee Stock Purchase Plan On July 2, 2020, the Company’s board of directors adopted and the Company’s stockholders approved the 2020 Employee Stock Purchase Plan (the “ESPP”), which became effective immediately prior to the effectiveness of the registration statement for the Company’s IPO. The total shares initially reserved for issuance under the ESPP is limited to 1,000,000 shares.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of presentation	The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All material inter-company transactions and balances have been eliminated upon consolidation. All foreign currency amounts in the statement of operations and comprehensive loss have been translated using an average rate for the reporting period. The Company translates all monetary assets and liabilities denominated in foreign currencies into U.S. dollars using the exchange rates in effect at the balance sheet dates and other assets and liabilities using historical exchange rates. All figures expressed, except share amounts, are represented in U.S. dollars in millions.
Use of estimates	The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates estimates, including those related to contingent assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the reporting period. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, reinsurance recoverables on unpaid losses, and the fair values of investments.
Cash, cash equivalents and restricted cash	Cash consists primarily of cash on hand and bank deposits. Cash equivalents consist primarily of money market accounts with maturities of three months or less at the date of acquisition and are stated at cost, which approximates fair value. The Company’s restricted cash relates to security deposits for office leases in Israel. The carrying value of restricted cash approximates fair value.
Deferred offering costs	The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded as a reduction to the carrying value of stockholders' equity (deficit) as a reduction of additional paid-in capital generated as a result of such offering. Should an in-process equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the condensed consolidated statements of operations and comprehensive loss. As of June 30, 2020, the Company recorded deferred offering costs of $2.8 million within other assets in the accompanying condensed consolidated balance sheets.
Recent accounting pronouncements	The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. Recently issued accounting pronouncements In February 2016, the FASB issued Leases (Topic 842) (“ASU 2016-02”), whereby lessee will be required to recognize for all leases at the commencement date a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. ASU 2016-02 is effective for the Company’s annual periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The adoption of the new standard is expected to result in the recognition of additional lease liabilities and right-of-use assets as of January 1, 2022. The Company is evaluating the potential impact of this pronouncement. In June 2016, the FASB issued Financial Instruments — Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity debt securities, premium receivables, and reinsurance recoverable. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. ASU 2016-13 requires a valuation allowance to be calculated on these financial assets, as well as available for sale securities, and that they be presented on the financial statements net of the valuation allowance. ASU 2016-13 is effective for the Company’s annual periods beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2016-13 on its financial condition and results of operations, with a primary focus on its reinsurance recoverable.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	The following represents the Company’s cash, cash equivalents and restricted cash as of June 30, 2020 and December 31, 2019 ($ in millions): As of June 30, December 31, 2020 2019 Cash and cash equivalents $ 258.5 $ 270.0 Restricted cash 0.3 0.3 Total cash, cash equivalents and restricted cash $ 258.8 $ 270.3
Restricted cash	The following represents the Company’s cash, cash equivalents and restricted cash as of June 30, 2020 and December 31, 2019 ($ in millions): As of June 30, December 31, 2020 2019 Cash and cash equivalents $ 258.5 $ 270.0 Restricted cash 0.3 0.3 Total cash, cash equivalents and restricted cash $ 258.8 $ 270.3

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Amortized cost and fair values	The following tables present cost or amortized cost and fair values of investments as of June 30, 2020 and December 31, 2019 ($ in millions): Cost or Amortized Cost Gross Fair Gains Losses June 30, 2020 U.S. Government obligations $ 6.5 $ 0.2 $ — $ 6.7 Total $ 6.5 $ 0.2 $ — $ 6.7 December 31, 2019 U.S. Government obligations $ 5.8 $ 0.1 $ — $ 5.9 Total $ 5.8 $ 0.1 $ — $ 5.9
Contractual maturities of bonds	The following table presents the cost or amortized cost and estimated fair value of bonds as of June 30, 2020 by contractual maturity ($ in millions). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of June 30, 2020 Cost or Fair Value Due in one year or less $ 0.1 $ 0.1 Due after one year through five years 6.4 6.6 Due after five years through ten years — — Due after ten years — — Total $ 6.5 $ 6.7
Net investment income	An analysis of net investment income follows ($ in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Interest on cash and cash equivalents $ 0.1 $ 0.4 $ 0.8 $ 0.8 Short-term investments 0.1 0.1 0.3 0.2 Total net investment income $ 0.2 $ 0.5 $ 1.1 $ 1.0
Aging of gross unrealized losses	The following table presents the gross unrealized losses and related fair values for the Company’s available-for-sale bond securities, grouped by duration of time in a continuous unrealized loss position, as of December 31, 2019 ($ in millions): Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2019 U.S. Government obligations $ 0.2 $ — $ 2.2 $ — $ 2.4 $ — Total $ 0.2 $ — $ 2.2 $ — $ 2.4 $ —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair value hierarchy for financial assets and liabilities	The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured as of June 30, 2020 and December 31, 2019 ($ in millions): Fair Value Measurements as of June 30, 2020 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 6.7 $ — $ 6.7 Total $ — $ 6.7 $ — $ 6.7 Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 5.9 $ — $ 5.9 Total $ — $ 5.9 $ — $ 5.9

Unpaid Loss and Loss Adjustme_2

Unpaid Loss and Loss Adjustment Expense ("LAE") (Tables)	6 Months Ended
	Jun. 30, 2020
Insurance [Abstract]
Activity in the liability for unpaid loss and LAE	The following table presents the activity in the liability for unpaid loss and LAE in the six months ended June 30, 2020 and 2019 ($ in millions): Six Months Ended 2020 2019 Unpaid loss and LAE at beginning of period $ 28.2 $ 13.1 Less: Reinsurance recoverable at beginning of period (1). 18.5 11.3 Net unpaid loss and LAE at beginning of period 9.7 1.8 Add: Incurred loss and LAE, net of reinsurance, related to: Current year 33.5 15.4 Prior years 5.2 2.4 Total incurred 38.7 17.8 Deduct: Paid loss and LAE, net of reinsurance, related to: Current year 24.4 11.6 Prior years 13.2 4.2 Total paid 37.6 15.8 Unpaid loss and LAE, net of reinsurance recoverable, at end of period 10.8 3.8 Reinsurance recoverable at end of period (1) 24.5 16.9 Unpaid loss and LAE, gross of reinsurance recoverable, at end of period $ 35.3 $ 20.7 (1) Reinsurance recoverable in this table includes only ceded unpaid loss and LAE

Other Liabilities and Accrued_2

Other Liabilities and Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2020
Other Liabilities Disclosure [Abstract]
Other liabilities and accrued expenses	Other liabilities and accrued expense consist of the following ($ in millions): As of June 30, December 31, 2020 2019 Ceded premium payable $ 5.5 $ 3.9 Accrued advertising costs 4.3 7.9 Accrued professional fees 3.3 2.8 Employee compensation payable 1.8 1.0 Premium taxes payable 1.3 2.6 Indirect taxes payable 0.8 0.4 Income tax payable 0.7 0.5 Other payables 0.8 0.6 Total other liabilities and accrued expense $ 18.5 $ 19.7

Convertible Preferred Stock (Ta

Convertible Preferred Stock (Tables)	6 Months Ended
	Jun. 30, 2020
Temporary Equity Disclosure [Abstract]
Convertible preferred stock	As of each balance sheet date, preferred stock consisted of the following ($ in millions, except for share amounts): As of June 30, 2020 Preferred Preferred Carrying Liquidation Common Stock Series Seed Preferred stock 7,905,140 7,905,140 $ 12.9 $ 13.0 7,905,140 Series A Preferred stock 3,328,774 3,328,774 14.0 13.6 3,328,774 Series B Preferred stock 4,511,417 4,511,417 34.1 34.1 4,511,417 Series C Preferred Stock 8,703,846 8,703,846 119.8 120.1 8,703,846 Series D Preferred Stock 7,107,930 7,107,930 299.4 300.0 7,107,930 31,557,107 31,557,107 $ 480.2 $ 480.8 31,557,107 As of December 31, 2019 Preferred Preferred Carrying Liquidation Common Stock Series Seed Preferred stock 7,905,140 7,905,140 $ 12.9 $ 13.0 7,905,140 Series A Preferred stock 3,328,774 3,328,774 14.0 13.6 3,328,774 Series B Preferred stock 4,511,417 4,511,417 34.1 34.1 4,511,417 Series C Preferred Stock 8,703,846 8,703,846 119.8 120.1 8,703,846 Series D Preferred Stock 7,107,930 7,107,930 299.4 300.0 7,107,930 31,557,107 31,557,107 $ 480.2 $ 480.8 31,557,107

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Fair value assumptions	The fair value of each option granted during the six months ended June 30, 2020 and 2019 is estimated on the date of grant using the Black-Scholes model with the following assumptions: Six Months Ended 2020 2019 Weighted average expected term (years) 6.1 6.1 Risk-free interest rate 1.0% 2.5% Volatility 40% 50% Expected dividend yield 0% 0%
Stock options activity	The following table summarizes activity of stock options ($ in millions, except for option and average amounts): Number of Weighted- Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2019 4,048,802 $ 13.27 8.8 $ 42.2 Granted 707,030 24.41 Exercised (84,936) 2.08 Cancelled (92,376) 20.28 Outstanding as of June 30, 2020 4,578,520 $ 15.06 8.6 $ 43.1 Options exercisable as of June 30, 2020 1,222,898 $ 4.79 7.3 $ 24.1 Options vested and expected to vest as of June 30, 2020 4,578,520 $ 15.06 8.6 $ 43.1
Stock-based compensation expense	Stock-based compensation expense was classified in the condensed consolidated statements of operations as follows ($ in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Loss and loss adjustment expense, net $ 0.1 $ — $ 0.1 $ — Other insurance expense 0.2 0.1 0.4 0.2 Sales and marketing 0.6 0.1 1.3 0.2 Technology development 0.7 0.1 1.3 0.1 General and administrative 0.8 0.1 1.5 0.3 Total stock-based compensation expense $ 2.4 $ 0.4 $ 4.6 $ 0.8

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Basic and diluted net loss per share	Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Three Months Ended June 30, Six Months Ended 2020 2019 2020 2019 Numerator: Net loss attributable to common stockholders ($ in millions) $ (21.0) $ (23.1) $ (57.5) $ (44.7) Denominator: Weighted average common shares outstanding — basic and diluted 11,891,979 11,072,985 11,750,198 11,028,667 Net loss per share attributable to common stockholders — basic and diluted $ (1.77) $ (2.09) $ (4.89) $ (4.05)
Antidilutive potential common shares	The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: As of 2020 2019 Options to purchase common stock 4,578,520 2,102,124 Convertible preferred stock (as converted to common stock) 31,557,107 28,595,471 36,135,627 30,697,595

Commitment and Contingent Lia_2

Commitment and Contingent Liabilities (Tables)	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Aggregate minimum rental commitments under non-cancelable leases	Aggregate minimum rental commitments under non-cancelable leases at June 30, 2020 are as follows ($ in millions): 2020 (remaining six months) $ 1.8 2021 3.4 2022 3.1 2023 0.3 2024 0.3 $ 8.9

Geographical Breakdown of Gro_2

Geographical Breakdown of Gross Written Premium (Tables)	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Gross written premium by state	The Company has a single reportable segment and offers insurance coverage under a single line of business, homeowners multi-peril. Gross written premium by jurisdiction are as follows ($ in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Jurisdiction Amount % of GWP Amount % of GWP Amount % of GWP Amount % of GWP Texas $ 11.8 25.3 % $ 6.7 26.4 % $ 20.6 24.3 % $ 12.0 26.8 % California 9.9 21.2 % 6.4 25.2 % 19.3 22.8 % 11.3 25.3 % New York 5.3 11.3 % 3.6 14.2 % 10.2 12.0 % 6.5 14.5 % Georgia 2.8 6.0 % 1.4 5.5 % 4.9 5.8 % 2.4 5.4 % Illinois 2.6 5.6 % 1.3 5.1 % 4.2 5.0 % 2.1 4.7 % New Jersey 1.6 3.4 % 1.0 3.9 % 3.1 3.7 % 1.9 4.3 % Michigan 1.4 3.0 % 0.5 1.9 % 2.4 2.8 % 1.0 2.2 % Ohio 1.2 2.6 % 0.6 2.4 % 2.2 2.6 % 1.2 2.7 % Arizona 1.1 2.4 % 0.5 2.0 % 1.9 2.2 % 0.9 2.0 % Pennsylvania 1.1 2.4 % 0.6 2.4 % 1.8 2.1 % 1.0 2.2 % All other 7.9 16.8 % 2.8 11.0 % 14.2 16.7 % 4.4 9.9 % $ 46.7 100.0 % $ 25.4 100.0 % $ 84.8 100.0 % $ 44.7 100.0 %

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Cash and cash equivalents	$ 258.5	$ 270
Restricted cash	0.3	0.3
Total cash, cash equivalents and restricted cash	258.8	$ 270.3	$ 226.9	$ 102.4
Deferred offering costs	$ 2.8

Investments - Amortized Cost an

Investments - Amortized Cost and Fair Values (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	$ 6.5	$ 5.8
Gross Unrealized Gains	0.2	0.1
Gross Unrealized Losses	0	0
Fair Value	6.7	5.9
U.S. Government obligations
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	6.5	5.8
Gross Unrealized Gains	0.2	0.1
Gross Unrealized Losses	0	0
Fair Value	$ 6.7	$ 5.9

Investments - Contractual Matur

Investments - Contractual Maturities of Bonds (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Cost or Amortized Cost
Due in one year or less	$ 0.1
Due after one year through five years	6.4
Due after five years through ten years	0
Due after ten years	0
Cost or Amortized Cost	6.5	$ 5.8
Fair Value
Due in one year or less	0.1
Due after one year through five years	6.6
Due after five years through ten years	0
Due after ten years	0
Fair Value	$ 6.7	$ 5.9

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net Investment Income [Line Items]
Net investment income	$ 0.2	$ 0.5	$ 1.1	$ 1
Interest on cash and cash equivalents
Net Investment Income [Line Items]
Net investment income	0.1	0.4	0.8	0.8
Short-term investments
Net Investment Income [Line Items]
Net investment income	$ 0.1	$ 0.1	$ 0.3	$ 0.2

Investments - Aging Of Gross Un

Investments - Aging Of Gross Unrealized Losses (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Fair Value
Less than 12 Months		$ 200,000
12 Months or More		2,200,000
Fair Value		2,400,000
Gross Unrealized Losses
Less than 12 Months		0
12 Months or More		0
Gross Unrealized Losses		0
U.S. Government obligations
Fair Value
Less than 12 Months		200,000
12 Months or More		2,200,000
Fair Value		2,400,000
Gross Unrealized Losses
Less than 12 Months		0
12 Months or More	$ 0	0
Gross Unrealized Losses		$ 0

Investments - Additional Inform

Investments - Additional Information (Details) - security	Jun. 30, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Number of debt securities held	7	9
Number of debt securities held, unrealized loss position for 12 months or more	0	4

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	$ 6.7	$ 5.9
Total	6.7	5.9
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	0	0
Total	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	6.7	5.9
Total	6.7	5.9
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	0	0
Total	$ 0	$ 0

Unpaid Loss and Loss Adjustme_3

Unpaid Loss and Loss Adjustment Expense ("LAE") (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Unpaid loss and LAE at beginning of period			$ 28.2	$ 13.1
Less: Reinsurance recoverable at beginning of period			18.5	11.3
Net unpaid loss and LAE at beginning of period			9.7	1.8
Add: Incurred loss and LAE, net of reinsurance, related to:
Current year			33.5	15.4
Prior years			5.2	2.4
Total incurred	$ 20.5	$ 9.9	38.7	17.8
Deduct: Paid loss and LAE, net of reinsurance, related to:
Current year			24.4	11.6
Prior years			13.2	4.2
Total paid			37.6	15.8
Unpaid loss and LAE, gross of reinsurance recoverable, at end of period	10.8	3.8	10.8	3.8
Reinsurance recoverable at end of period	24.5	16.9	24.5	16.9
Unpaid loss and LAE, gross of reinsurance recoverable, at end of period	$ 35.3	$ 20.7	35.3	20.7
Reserve deficiencies			$ 2.6	$ 1.2

Other Liabilities and Accrued_3

Other Liabilities and Accrued Expenses (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Ceded premium payable	$ 5.5	$ 3.9
Accrued advertising costs	4.3	7.9
Accrued professional fees	3.3	2.8
Employee compensation payable	1.8	1
Premium taxes payable	1.3	2.6
Indirect taxes payable	0.8	0.4
Income tax payable	0.7	0.5
Other payables	0.8	0.6
Total other liabilities and accrued expense	$ 18.5	$ 19.7

Convertible Preferred Stock (De

Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)	31,557,107		31,557,107
Convertible preferred stock, par value (usd per share)	$ 0.00001		$ 0.00001
Convertible preferred stock, issued (shares)	31,557,107		31,557,107
Convertible preferred stock, outstanding (shares)	31,557,107	31,557,107	31,557,107	28,595,471	24,449,177	24,445,555
Convertible preferred stock, carrying value	$ 480.2	$ 480.2	$ 480.2	$ 355.2	$ 180.8	$ 180.8
Convertible preferred stock, liquidation preference	$ 480.8		$ 480.8
Convertible preferred stock, common stock issuable upon conversion (shares)	31,557,107		31,557,107
Series Seed Preferred stock
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)	7,905,140		7,905,140
Convertible preferred stock, issued (shares)	7,905,140		7,905,140
Convertible preferred stock, outstanding (shares)	7,905,140		7,905,140
Convertible preferred stock, carrying value	$ 12.9		$ 12.9
Convertible preferred stock, liquidation preference	$ 13		$ 13
Convertible preferred stock, common stock issuable upon conversion (shares)	7,905,140		7,905,140
Series A Preferred stock
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)	3,328,774		3,328,774
Convertible preferred stock, issued (shares)	3,328,774		3,328,774
Convertible preferred stock, outstanding (shares)	3,328,774		3,328,774
Convertible preferred stock, carrying value	$ 14		$ 14
Convertible preferred stock, liquidation preference	$ 13.6		$ 13.6
Convertible preferred stock, common stock issuable upon conversion (shares)	3,328,774		3,328,774
Series B Preferred stock
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)	4,511,417		4,511,417
Convertible preferred stock, issued (shares)	4,511,417		4,511,417
Convertible preferred stock, outstanding (shares)	4,511,417		4,511,417
Convertible preferred stock, carrying value	$ 34.1		$ 34.1
Convertible preferred stock, liquidation preference	$ 34.1		$ 34.1
Convertible preferred stock, common stock issuable upon conversion (shares)	4,511,417		4,511,417
Series C Preferred Stock
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)	8,703,846		8,703,846
Convertible preferred stock, issued (shares)	8,703,846		8,703,846
Convertible preferred stock, outstanding (shares)	8,703,846		8,703,846
Convertible preferred stock, carrying value	$ 119.8		$ 119.8
Convertible preferred stock, liquidation preference	$ 120.1		$ 120.1
Convertible preferred stock, common stock issuable upon conversion (shares)	8,703,846		8,703,846
Series D Preferred Stock
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)	7,107,930		7,107,930
Convertible preferred stock, issued (shares)	7,107,930		7,107,930
Convertible preferred stock, outstanding (shares)	7,107,930		7,107,930
Convertible preferred stock, carrying value	$ 299.4		$ 299.4
Convertible preferred stock, liquidation preference	$ 300		$ 300
Convertible preferred stock, common stock issuable upon conversion (shares)	7,107,930		7,107,930

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares	Feb. 18, 2020	Jun. 30, 2020	Dec. 31, 2019
Equity [Abstract]
Common stock, authorized (shares)		52,000,000	52,000,000
Common stock, par value (usd per share)		$ 0.00001	$ 0.00001
Affiliated entity | The Lemonade Foundation
Related Party Transaction [Line Items]
Contribution to the Lemonade Foundation (shares)	500,000

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions	Jun. 08, 2020USD ($)employee	Dec. 31, 2019USD ($)employee$ / sharesshares	Jun. 30, 2020USD ($)shares	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)shares	Jun. 30, 2019USD ($)	Dec. 31, 2017USD ($)employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (shares) | shares			7,312,590		7,312,590
Common stock available for grant (shares) | shares			1,750,178		1,750,178
Stock-based compensation expense			$ 2.4	$ 0.4	$ 4.6	$ 0.8
Proceeds from release of shares upon repayment					$ 1.3	0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					4 years
Expiration period					10 years
Stock-based compensation expense			2.4	0.4	$ 4.5	0.7
Repricing of stock options (shares) | shares		1,708,300
Repricing of stock options, number of employees impacted | employee		198
Repricing of stock options, exercise price, lower limit (usd per share) | $ / shares		$ 26.04
Repricing of stock options, exercise price, upper limit (usd per share) | $ / shares		28.53
Repricing of stock options, fair value (usd per share) | $ / shares		$ 23.69
Repricing of stock options, incremental expense			0.1		0.2
Repricing of stock options, unrecognized incremental expense		$ 1.4
Repricing of stock options, unrecognized incremental expense, period for recognition		1 year 4 months 24 days
Unrecognized expense			30.3		$ 30.3
Unrecognized expense, period for recognition					1 year 4 months 24 days
Executive | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			0.1	$ 0.1	$ 0.1	$ 0.1
Unrecognized expense			$ 0.1		$ 0.1
Unrecognized expense, period for recognition					1 year
Subscriptions receivable, number of employees | employee	2						2
Subscriptions receivable							$ 1.5
Subscriptions receivable, weighted average interest rate							1.90%
Proceeds from release of shares upon repayment	$ 1.3

Stock-based Compensation - Fair

Stock-based Compensation - Fair Value Assumptions (Details) - Stock options	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average expected term	6 years 1 month 6 days	6 years 1 month 6 days
Risk-free interest rate	1.00%	2.50%
Volatility	40.00%	50.00%
Expected dividend yield	0.00%	0.00%

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Options Activity (Details) $ / shares in Units, $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares
Number of Options
Outstanding (shares) | shares	4,048,802
Granted (shares) | shares	707,030
Exercised (shares) | shares	(84,936)
Cancelled (shares) | shares	(92,376)
Outstanding (shares) | shares	4,578,520	4,048,802
Exercisable (shares) | shares	1,222,898
Vested and expected to vest, (shares) | shares	4,578,520
Weighted- Average Exercise Price
Outstanding (usd per share) | $ / shares	$ 13.27
Granted (usd per share) | $ / shares	24.41
Exercised (usd per share) | $ / shares	2.08
Cancelled (usd per share) | $ / shares	20.28
Outstanding (usd per share) | $ / shares	15.06	$ 13.27
Exercisable, weighted-average exercise price (usd per share) | $ / shares	4.79
Vested and expected to vest, weighted-average exercise price (usd per share) | $ / shares	$ 15.06
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted-average remaining contractual, term	8 years 7 months 6 days	8 years 9 months 18 days
Exercisable, weighted-average remaining contractual, term	7 years 3 months 18 days
Vested and expected to vest, weighted-average remaining contractual, term	8 years 7 months 6 days
Outstanding, aggregate intrinsic value, outstanding | $	$ 43.1	$ 42.2
Exercisable, aggregate intrinsic value | $	24.1
Vested and expected to vest, aggregate intrinsic value | $	$ 43.1

Stock-based Compensation - Expe

Stock-based Compensation - Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2.4	$ 0.4	$ 4.6	$ 0.8
Loss and loss adjustment expense, net
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.1	0	0.1	0
Other insurance expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.2	0.1	0.4	0.2
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.6	0.1	1.3	0.2
Technology development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.7	0.1	1.3	0.1
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0.8	$ 0.1	$ 1.5	$ 0.3

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	(1.00%)	(0.20%)

Net Loss Per Share - Reconcilia

Net Loss Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net loss attributable to common stockholders	$ (21)	$ (23.1)	$ (57.5)	$ (44.7)
Denominator:
Weighted average common shares outstanding—basic and diluted (shares)	11,891,979	11,072,985	11,750,198	11,028,667
Net loss per share attributable to common stockholders—basic and diluted (usd per share)	$ (1.77)	$ (2.09)	$ (4.89)	$ (4.05)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Potential Common Shares (Details) - shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares	36,135,627	30,697,595
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares	4,578,520	2,102,124
Convertible preferred stock (as converted to common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares	31,557,107	28,595,471

Related Party Transactions (Det

Related Party Transactions (Details)	Feb. 18, 2020shares	Jun. 30, 2020USD ($)director	Mar. 31, 2020shares	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)director$ / shares	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Related Party Transaction [Line Items]
Due to (from) related parties		$ 0			$ 0		$ 0
Common share contribution to the Lemonade Foundation					12,200,000	$ 0
Common Stock
Related Party Transaction [Line Items]
Contribution to the Lemonade Foundation (shares) | shares			500,000
Key stockholder | Travel related expenses
Related Party Transaction [Line Items]
Expenses with related parties		$ 100,000		$ 100,000	$ 100,000	100,000
Affiliated entity | The Lemonade Foundation
Related Party Transaction [Line Items]
Number of shared directors | director		2			2
Contribution to the Lemonade Foundation (shares) | shares	500,000
Contribution of common stock to related party, fair value (usd per share) | $ / shares					$ 24.36
Common share contribution to the Lemonade Foundation					$ 12,200,000
Due from related party		$ 100,000			100,000
Affiliated entity | Rental expense
Related Party Transaction [Line Items]
Expenses with related parties		$ 100,000		$ 100,000	$ 100,000	$ 100,000

Commitment and Contingent Lia_3

Commitment and Contingent Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
2020 (remaining six months)	$ 1.8		$ 1.8
2021	3.4		3.4
2022	3.1		3.1
2023	0.3		0.3
2024	0.3		0.3
Aggregate minimum rental commitments	8.9		8.9
Rental expense	1	$ 0.7	1.9	$ 1.2
Office leases, payment guarantees
Loss Contingencies [Line Items]
Guarantees	$ 0.6		$ 0.6		$ 0.6

Geographical Breakdown of Gro_3

Geographical Breakdown of Gross Written Premium (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)segment	Jun. 30, 2019USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment			1
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 46.7	$ 25.4	$ 84.8	$ 44.7
Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	100.00%	100.00%	100.00%	100.00%
Texas
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 11.8	$ 6.7	$ 20.6	$ 12
Texas | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	25.30%	26.40%	24.30%	26.80%
California
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 9.9	$ 6.4	$ 19.3	$ 11.3
California | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	21.20%	25.20%	22.80%	25.30%
New York
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 5.3	$ 3.6	$ 10.2	$ 6.5
New York | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	11.30%	14.20%	12.00%	14.50%
Georgia
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 2.8	$ 1.4	$ 4.9	$ 2.4
Georgia | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	6.00%	5.50%	5.80%	5.40%
Illinois
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 2.6	$ 1.3	$ 4.2	$ 2.1
Illinois | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	5.60%	5.10%	5.00%	4.70%
New Jersey
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 1.6	$ 1	$ 3.1	$ 1.9
New Jersey | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	3.40%	3.90%	3.70%	4.30%
Michigan
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 1.4	$ 0.5	$ 2.4	$ 1
Michigan | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	3.00%	1.90%	2.80%	2.20%
Ohio
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 1.2	$ 0.6	$ 2.2	$ 1.2
Ohio | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.60%	2.40%	2.60%	2.70%
Arizona
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 1.1	$ 0.5	$ 1.9	$ 0.9
Arizona | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.40%	2.00%	2.20%	2.00%
Pennsylvania
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 1.1	$ 0.6	$ 1.8	$ 1
Pennsylvania | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.40%	2.40%	2.10%	2.20%
All other
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 7.9	$ 2.8	$ 14.2	$ 4.4
All other | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	16.80%	11.00%	16.70%	9.90%

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 02, 2020	Jul. 07, 2020	Jun. 30, 2020	Dec. 31, 2019
Subsequent Event [Line Items]
Common stock, authorized (shares)			52,000,000	52,000,000
Common stock, par value (usd per share)			$ 0.00001	$ 0.00001
Common stock reserved for issuance (shares)			7,312,590
Subsequent event
Subsequent Event [Line Items]
Common stock, authorized (shares)		200,000,000
Common stock, par value (usd per share)		$ 0.00001
Preferred stock, authorized (shares)		10,000,000
Preferred stock, par value (usd per share)		$ 0.00001
Subsequent event | 2020 Incentive Compensation Plan
Subsequent Event [Line Items]
Common stock reserved for issuance (shares)	5,503,678
Common stock reserved for issuance, annual increase, percentage of outstanding shares	5.00%
Maximum shares that may be issued upon exercise of incentive stock options (shares)	3,650,000
Subsequent event | 2020 Employee Stock Purchase Plan
Subsequent Event [Line Items]
Common stock reserved for issuance (shares)	1,000,000
IPO | Subsequent event
Subsequent Event [Line Items]
Common stock sold (shares)	12,650,000
Common stock sold, offering price (usd per share)	$ 29
Net proceeds from common stock sold	$ 335.6
Offering costs	$ 3.5
Underwriter's option | Subsequent event
Subsequent Event [Line Items]
Common stock sold (shares)	1,650,000