New for old contents insurance

What is new for old insurance?

New for old insurance is a type of contents insurance that replaces your old or damaged belongings with brand-new items of the same type and quality. For example, if your 5-year-old washing machine breaks down and can’t be repaired, your insurer will cover the cost of a brand-new replacement, not just the second-hand value.

This type of policy is often included as part of home contents insurance, but it’s always worth checking your policy documents to be sure. It can be useful for items that lose value over time, like electronics, appliances, or furniture. If you’re not sure how much cover you need, our guide on how much home insurance you need can help you figure it out.

How does new for old insurance work?

If you need to make a claim, new for old insurance covers the cost of replacing your lost or damaged item with a brand-new equivalent. Here’s how the process typically works:

• You contact your insurer and provide details of the item and what happened.
• Your insurer will assess the claim and check it against your policy.
• If your claim is approved, you’ll either receive a replacement item or a cash settlement that covers the cost of a new equivalent.

For example, if your 10-year-old fridge is beyond repair, your new for old home insurance could pay for a brand-new model of a similar spec.

It’s also important to know what situations your policy covers. For instance, some policies may cover home insurance claims for burglaries, even when keys are used, while others may not.

What does new for old insurance cover?

Most new for old contents insurance policies will cover:

• Household items like furniture, appliances, and soft furnishings
• Personal belongings, including clothes, jewellery, and gadgets like laptops and mobile phones
• Home entertainment items, such as TVs and sound systems
• Bikes and sports gear, often under a personal belongings insurance add-on

Many insurers also offer additional cover for items you take outside the home. For example, if you cycle regularly, you might want to check if your bike is protected. Or if you often take gadgets on holidays, consider whether your policy covers them while you’re away.

What doesn’t new for old insurance cover?

While new for old policies offer a lot of protection, there are some important exclusions to be aware of:

• Wear and tear – If an item is already worn out, your insurer may not pay for a full replacement.
• Policy limits – High-value items, like artwork or jewellery, may have a claim limit unless they’re specifically listed on your policy.
• Gadgets – Phones, laptops, and tablets may not be fully covered unless you have extra gadget insurance.
• Negligence – If an item was damaged because you didn’t take reasonable care, your claim might not be accepted.

New for old insurance vs indemnity cover

New for old pays for a brand-new replacement of the same item, no matter how old the original was. But indemnity cover only pays what the item was worth at the time of loss, factoring in wear and tear.

For example, if your 6-year-old TV is stolen, new for old insurance would cover the cost of a new TV of similar quality. Indemnity cover, on the other hand, might only pay a small fraction of the cost because of depreciation.

While new for old home insurance often comes with higher premiums, it could save you a lot of money if you need to replace older items in your home.

Is new for old insurance worth it?

If your home is filled with older appliances, furniture, or tech, new for old insurance can provide peace of mind knowing you’ll be able to replace items without a huge out-of-pocket cost.

However, if you mainly own newer items or are looking to keep your insurance costs down, you might be happy with an indemnity policy instead. It’s about balancing protection and price—whether it’s worth it depends on your circumstances. If you’re not sure what level of cover is right for you, our guide on how much home insurance you need can help.