House Contents Insurance

[malana-3]

My house contents insurance is on the basis of "New for Old" but what does this really mean? My 3pce suite has been damaged and the insurance inspector has agreed that it is a write off. He has also agreed that I have a legitimate claim and that to replace the suite will cost a minimum of £1100. The offer from the insurance company is £500. As I say, what does "New for Old" really mean?

[KJN]

New for old usually means that if you have suffered loss or damage to a particular item, ie. your television has been damaged accidentally, then you would be due to receive a replacement when you claim on your home insurance. The item which you receive as a replacement is a new replacement. So, for instance, if you have your home broken into and your furniture is ripped during the break in, then the items which have been ruined, will be replaced by new, even if the items are 4 years old or more, they will still be replaced by new items.

So for instance you would be covered via accidental damage for things such as.

• Televisions (which usually includes for satellite and digital receivers).
• Video players and DVD players and recorders.
• Home computers, games consoles and other audio equipments which is based within the home.
• CCTV, receiving dishes and aerials, and cameras which are fixed to the home.
• Glass tops which are part of furniture, ceramic glass which are part of cooker hobs within the home.
• Mirrors
• Contents within the garden
• Plus insurance cover on contents within the home (these are covered within the boundaries of your home, you should check out your insurance cover policy to find out the exact limit).

There are however, things which are not covered via the accidental damage in your insurance policy. These are things like ;-

• Insurance companies usually will not cover for damage or loss which is caused by a flood or storm to contents which are not in a building.
• The home insurance policy does not usually cover for items such as games consoles, computer equipment or laptops which are designed to be portable.
• Accidental damage which has been caused by domestic pets.

For a more comprehensive look at what your insurance policy covers, check out the terms, conditions and small print.

[malana-3]

Thanks KJN for the swift response. What you say is what happened to my neighbour, he ruined a laptop by upsetting a glass of beer into it and his insurance replaced it immediately (in the event the new laptop was the latest improved model). My insurance company would seem to be more hardnosed. My suite is about 6 years old, would I have grounds to contest their offer?

[redcrx]

the insurers will take into consideration wearand tear on something like a sofa.

[vivandorron]

Insurers will always try to reduce the amount for payment. Consequently, I would suggest that, taking into account 'fair wear and tear', you tell your Insures that their Loss Adjuster has valued the replacement cost at £1100 but, to avoid protracted correspondence on the matter, you would be willing for a mid-way settlement figure of £800......I feel sure it would work...unless of course you wish to press for a higher figure.

Ron.

Ron.

[redcrx]

also watch out for the like for like part. Our insurers offered a £500 TV of a different brand etc to replace a 2 year old JVC which had cost us about £1500 (i think it was). We refused the offer and eventually found a stockist who still had a model JVC the same as ours at £1200 and the insurers paid us that figure.
Have you checked to see if you can get the same suite again? contact the original seller to see.

[KJN]

Yes contest the offer, The rule of thumb is never accept the first offer, would be great if you could go back to where you purchased the suite and get an estimate from them to replace it, send this off to the Insurance Company with the information that the lost adjuster verbally informed you that the value of the loss was set at £1100 asking how they came to the figure of £500.00, await their reply, be interesting to see what they say, (all in writing no telephone calls)

[factor-fiction]

There are some differing views here because we don't know the exact detials of your policy
It seems to me "new for old" means what it says and shouldn't include any deduction for wear and tear.
However, as KJN suggests, policies described as 'new for old' may actually restrict 'new for old' coverage to certain items such as TVs.
So you need to see what your policy says.
If everything is covered on a 'new for old' basis then press them to replace it with a new one.

[woozer]

Go with Factor 30 & KJN some soft furnishings and upholstered items may be subject to a wear and tear deduction once they reach a certain age.