Indemnity is the principle behind most insurance: after a covered loss, the insurer puts you back in the financial position you were in just before it, no better and no worse. How that’s measured depends on the policy. Some pay what an item was worth at the time, allowing for wear and tear; others pay the cost of replacing it as new, which is called new for old.
At Wigwam
Our contents protection settles claims new for old for most things, so a damaged sofa is valued at the price of a similar one bought new today, not what a used one would fetch. A few things are valued differently because “new” doesn’t fit them: clothing and household linen, and motorised vehicles such as a motorbike, allow for age, quality, use and any existing damage; things you can’t buy new, such as antiques, are valued at current market value. The excess is £50.
Getting it right
The charge for our cover is based on the replacement value you declare. If that figure is lower than the true value, a claim is paid in proportion, so add it up room by room at today’s prices, and call us before you add more to your unit.
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