What is new for old contents insurance?
New for old contents insurance is a type of cover that replaces damaged, lost or stolen items with brand-new products of the same value. This means you won’t lose out financially if your belongings have gone down in value.
How new for old contents insurance works
Say your three-year-old laptop is stolen: new for old contents insurance will cover the cost of a new laptop, rather than pay out what yours was worth when it was taken. If the same model of laptop isn’t available, the insurance will cover an equivalent model.
Insurance providers handle new for old in different ways. Check the small print before buying a policy, so you know what cover you’ll receive.
What does new for old contents insurance cover?
New for old insurance can cover:
Household appliances - including your fridge, freezer or washing machine
Valuables and personal effects - such as jewellery
Tech and electronics - new for old insurance is useful for gadgets that quickly depreciate in value
Rugs and carpets
Home furnishings - such as your sofas, dining tables and beds.
What doesn’t new for old insurance cover?
New for old insurance won’t usually cover clothes, bed linen and curtains because they tend to be less durable and have a limited life span.
Any pay-out you receive for those items will likely be reduced to allow for wear and tear.
What should I look out for when buying a new for old policy?
Don’t confuse new for old policies with indemnity policies (also known as ‘wear and tear’ policies). These take depreciation into account, so your belongings will be replaced at their current, rather than brand-new, value.
In other words, if you claim for a TV you bought three years ago, your insurance provider will pay for a three-year-old TV, not a brand-new one.
Is new for old insurance worth it?
New for old contents insurance can come in handy, especially for items that are likely to depreciate in value, such as white goods and tech.
If you don’t have new for old insurance, you could get a smaller pay-out if you make a claim. That’s because your provider will only pay what your item is worth when you claim.
How do I know if I’m getting a new for old policy or one that takes wear and tear into account?
You’ll need to check the small print to be certain. Most insurance policies are based on new for old cover, but there may be exceptions.
It’s also worth understanding whether your policy covers accidental damage. See our guide to accidental damage insurance.
Will my contents insurance policy give me new for old cover as standard?
Most insurance policies offer new for old cover as standard, but all policies are different so read the small print to be sure.
How can I find affordable new for old insurance cover?
It’s worth shopping around. If you start a quote with us, we’ll show you quotes from a range of trusted insurance providers. We’ll also clearly show you which policies include new for old cover.
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As well as writing for Churchill and Privilege insurance websites, Karen’s CV includes working with M&S, Debenhams, Tesco, Sainsbury’s and John Lewis. With over 20 years of editorial experience for big household names she leads a talented content team with a focus on simplifying personal finance for everybody.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Helen’s our resident home insurance expert, as the former Head of Home Insurance at Compare the Market. She's also experienced with car insurance and pet insurance from her previous roles across commercial, partnerships and as a freelance consultant, working with more than 100 insurers across a variety of insurance products.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
