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New for old contents insurance

New for old contents insurance

Being covered by home insurance offers invaluable peace of mind, and new for old contents insurance is an important part of the mix.

Chris King
From the Home team
3
minute read
posted 1 APRIL 2020

What is new for old cover?

New for old insurance is a type of cover that helps you to replace items that have been damaged, lost or stolen with brand new products of equivalent value. It allows you to get a replacement item more quickly as the product will be readily available to buy.

So, if you've had a burglary, for example, and your TV is stolen, it doesn't matter if you've had it for three years or three days – your insurance provider will pay for a brand-new, like-for-like item.

How new for old insurance works

It is useful to know how like-for-like replacement works in practice within new for old cover. For example, if you bought an iPhone 6 when it was a top-of-the-range model, the new for old cover will replace it with an iPhone 6 or equivalent, not a current top of the range model at the time of the claim. If the existing model is no longer available and needs replacing under your claim, you'll be given the closest equivalent available as a replacement.

It's also a handy reminder when deciding how much cover to buy. You should work out the cost of replacing every possession in your home to make sure you're insured up to a level that will allow you to replace everything, if you had a fire or flood for example.

Different insurance providers can adopt slightly different ways of handling new for old, so it's worth checking the small print to see what a policy says before buying, so you understand exactly the type of cover you have.

Are there any exceptions?

Clothing, bed linen and curtains are usually exceptions to the rule when it comes to new for old insurance as they're less durable and have a limited life span. Any payout you receive for these items is likely to be reduced to allow for wear and tear.

What should I look out for?

Don't confuse new for old policies with indemnity policies, also known as 'wear and tear' policies. The latter take use and damage into account, so will replace items at their current second-hand value taking into account depreciation.

That means if you claim for a washing machine that was three years old, your insurance provider will pay for a three-year-old washing machine, not a brand-new one.

You should also read the small print to make sure you know exactly what is and isn't included.

How do I know if I’m getting a new for old policy, or one that takes into account wear and tear?

Pretty much any new policy you purchase will be based on new for old cover, but there are still some exceptions. When reviewing your quotes with Compare the Market, we'll show you which policies settle claims based on new for old cover; you can also choose to only show policies that offer new for old.

It's also worth understanding what cover you get under your policy for accidental damage if that is appropriate. See our guide to accidental damage insurance.

How can I find affordable new for old insurance cover?

Just start a quote and we'll provide you with competitive rates from our many providers, showing you which policies include new for old cover.

50% of customers could save up to £105 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 2020 50% of customers could save up to £105.35 on their home insurance premium.

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