When it comes to protecting your home and its contents, it's important to get the right level of cover for you and your family. New for old contents insurance can provide peace of mind.
Our guide walks you through the basics of how this type of insurance works, what it typically covers, and why it might be the right choice for you.
What is new for old home insurance?
New for old home insurance means that if an item is damaged, lost, or stolen, the insurer will replace it with a brand-new equivalent. It doesn't matter how old the item is or if it's depreciated in value, you'll get a brand-new replacement.
How does new for old insurance work?
New for old insurance is slightly different to standard contents insurance. Say your 7-year-old washing machine was destroyed in a house fire. The insurer will pay for a brand new washing machine of similar type and quality to replace it.
Many home items go down in value quickly because people prefer not to buy used items or older models. New for old cover means you won't be out of pocket because your contents have depreciated since you first bought them.
New for old insurance can be handled differently by each insurer, so always check the fine print of your policy.
What’s usually covered by new for old contents insurance?
New for old insurance can cover:
- Furniture
- Household appliances - this includes your washing machine, fridge, or freezer.
- Valuables and personal effects - like jewellery, for example
- Tech and electronics
- Rugs and carpets
Are there other types of cover available?
Indemnity cover
This is also known as a wear and tear policy. This type of policy replaces the item at its current value rather than its original value.
These policies take into account the value depreciation of an item. So if you claim for a 3-year-old TV, your insurer will pay for a 3-year-old TV to replace it, not a brand new one.
This takes into account depreciation from age as well as wear and tear. It's a good idea to calculate the value of your home contents in case you disagree with your insurer about their worth. This is particularly important when it comes to high-value items.
So if you have a beloved art collection, an indemnity policy might be worth considering. The same goes for expensive jewellery. If your home insurance has a limit on how much cover they can offer for your jewellery, then specialist jewellery insurance or indemnity cover might be another option.
What to look for when getting new for old house insurance
If you're thinking about taking out this kind of policy, it's worth keeping the following in mind:
- Like-for-like replacements or cash payments: In some cases, you might be offered a replacement or a cash reimbursement when you make a claim. This can depend on what the cost of replacing the item would be through certain suppliers that the insurer prefers.
- Have the right amount of cover in place: You'll need to make sure to update any changes to the value of your item with your insurer. For example, if your policy covers you for an item at the price you bought it, but the item has gone up in value.
- Sets and pairs: You won't automatically be covered for full pairs or sets of items if they're damaged or lost. High-value home insurance might cover sets or pairs, though, so it's worth checking.
- Clothing and linens: If your cover extends to clothing and linens, you might find that a wear-and-tear deduction is made. This can also happen on claims for personal belongings that aren't yours. Unless you're legally responsible for the cost of replacing them. (For example, renting an item).
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