New for Old Home Insurance

New for old home insurance is a type of home insurance that allows you to replace your possessions with brand new ones if they are stolen or damaged by an insured event.  

More basic coverage might only pay out the market value of the item at the time you make the claim. But new for old insurance makes sure you have enough to replace it with the same item or its equivalent as new.  

This removes the financial burden of your belongings’ value depreciating from you and passes it to your insurer.  

This type of cover generally protects valuable and personal belongings like electronics, household appliances, furnishings, and fitted carpets. Items that do not have a long lifespan, like clothes or bedding, are not usually covered.  

When purchasing home insurance, you will need to state the total value of your home’s contents. Any items that are considered high value (approximately over £1,000 depending on the insurer) will need to be listed with their value separately.  

If your home’s contents are lost to events like theft, fire or flooding, the insurer will calculate the amount they pay-out for a claim based on replacing the items as brand new.  

As an example, if a sofa that cost £3,000 is destroyed in a fire 3 years later, it might only have a market value of £1,200. This could be because it is now a second-hand sofa with 3 years of wear and tear, and could be out of style.  

Without a new for old cover, you will only get £1,200 to replace the sofa. Whereas, with this cover, you will receive what you originally paid for the sofa, or an amount that allows you to buy a brand new equivalent sofa in today’s market. 

Insurers handle new for old claims in different ways, so always check the policy details so you know exactly what you’ll receive in the event of a claim.  

Expensive furniture like sofa or dining sets, particularly if they are from high-end brands or designers.  

Electronics like laptops, televisions or audio systems that become outdated and depreciate quickly.  

Home appliances like fridges, ovens, and washing machines. 

Wearables like jewellery, watches, or designer clothing and shoes.  

Tools or specialist equipment like ride-on lawnmowers or gym equipment.