When new material or parts replace damaged material or parts during repairs to a ship. Underwriters are entitled to make a deduction from the claim as a result of betterment but they waive this right in practice. Average adjusters may apply the principle in general average for vessels over 15 years old.
this is a phrase used most frequently in relation to contents insurance. It means that where an object is lost or destroyed it will be replaced brand new by the insurance company regardless of wear and tear.
This is insurance cover which will pay the full cost of replacing damaged or lost property with a similar, new item.
Settlement of claims will be at today's values, without making a deduction for wear and tear or age of your property. Some exclusions apply such as clothing over two years old and pedal cycles, please see policy wordings for details.
This is also called Reinstatement cover, which is found in different forms on different policies. Basically, it means the insurer agrees to settle the claim on the new replacement value of the item, that is with no deduction for wear and tear, regardless of what the item was bought for, or what its current market value is.
An expression in Marine Insurance which means that when repairs are made, new parts or equipment are supplied in place of old ones that have been lost or damaged. An insurance policy may stipulate that the difference between the old and new costs are either excluded or included in its coverage.
'New for old' is a practice of reimbursing the claimant for the full replacement value of an item, not what its current market value is. However, this will not apply to all items covered by a contents policy, so you need to check the exclusions.
A feature of some insurance policies where goods can be claimed for at replacement rather than historic cost.
Applies to contents insurance and simply means they will replace your old good with equivalent new models in the event of a claim. Also relates to certain local planning permissions that generally allows replacement of an existing old building with a new one.
Cover for property where the item that is damaged or lost is replaced by a new one and no deduction is made for wear and tear.
Replacing old damaged parts or equipment with new ones rather than repairing them.
New for old is a feature of some insurance policies which permits the policy holder to claim for the lost or damaged goods at their replacement rather than historic cost.
Insurance where the replacement value of the property which has been lost or damaged is payable without deduction for depreciation. (See also reinstatement value).
