UK Home Contents or Personal Belongings

In recent years, there has been a growth in the number of new for old policies. A new for old policy is one that replaces used, worn or old items with brand new replacement items, rather than the value of an equivalent used item.

Clearly, this means that items are replaced with higher value items and this concept actually contradicts one of the basic legal principles of insurance.

Insurance companies justify this breach of principle on the basis of the relatively low replacement costs of many household items, relative to their repair costs.

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