A simples guide

New for old contents insurance

With the right insurance policy, if you break something at home or you’re the victim of a burglary, you have the peace of mind of knowing that whatever is broken or stolen can be replaced. That’s why Home Insurance is so important. But have you considered adding new for old cover? 


What is new for old cover?

In a nutshell, new for old cover means that your insurers will, with a few exceptions, give you the equivalent value of whatever it is that’s been damaged or stolen. So if you had a burglary for example, and your 50-inch TV was stolen, it doesn’t matter whether you’ve had it three years, or three months, your insurance company will give you the money to buy an equivalent brand new one.

You can’t ask for the money for a better one, only the same type as you had. Of course you can upgrade when you’re buying a new one, but you’ll have to put the money towards it yourself. There are some exceptions too, for example clothing where there may be an adjustment from the insurers based on wear and tear so you the payment made will be reduced. 

What is the difference between new for old and indemnity insurance?

Back in the day, insurance companies didn’t pay out for new items if you made a claim on your home insurance policy. They looked at the items you wanted to replace and how much it cost new and then they took a percentage off for wear and tear.

This was a pain because it meant that you always had to put some money in yourself if you wanted to replace your possessions, like your TV or your sofa with a new one. Indemnity insurance is still around and even some new for old Contents Insurance will still use the indemnity on items like curtains, bed linen and clothes. 


Are there any drawbacks with new for old?

It may be that not everything is covered so you might have to accept indemnity cover for some items such as clothes, bed linen and curtains. So if your accessories and clothes are very expensive, you could be out of pocket. Check what’s not covered with new for old cover before you take out the policy and then you’ll know what’s covered with new for old and what’s not.

room with tv and sofa

Are there ways to reduce my insurance premium?

Yes, you can build up a no claims bonus which will help to reduce costs. Or, you could opt for a higher voluntary excess. This means that you agree to pay out yourself for a sum of money in the event of a claim. For example, if you had to claim for a new sofa at a cost of £750 and you had a £150 excess with your insurance company, they would effectively only pay you £600. If your new sofa still cost £750 it means that you’d need to pay £150 out of your own pocket to replace the sofa. 

I’ve had the same insurance policy for donkey’s years, is it really worth changing?

Absolutely! You should really look at your home insurance every time you get a renewal. You might be paying way over the odds for your policy, or you might have an indemnity policy that doesn’t provide you with the cover that you really need.

Looking for a Quote?

Get a new travel insurance quote in seconds and start saving

Get a quote

How do I find an affordable new for old insurance cover?

Just start a quote now and we’ll provide you with competitive quotes from our many providers. We’ve saved 50% of our customers up to £63.87 on their home insurance so why not start comparing today and grab yourself a great deal.**

**Based on online independent research by Consumer Intelligence during February 2016. 50% of consumers could achieve this saving on their Buildings and Contents insurance with comparethemarket.com.