Will my home insurance claim be settled on a ‘new for old’ basis?

Check with your insurer about how they settle the claims.  The majority of insurers settle claims on a ‘new for old’ basis.  You might find they make a deduction for wear and tear on certain items, such as clothes.

Settlement is based on the item you had and not the price you paid for the item.

An example:  You had a 55 inch television purchased for £1,300 about ten years ago.  The replacement model is based on the specifications of the television and not the price.  There might be a suitable replacement available which is £1,000 less than the original price and this is what your insurer would offer you.  If you would prefer a cash settlement you might be offered a lower amount because the insurer will receive a discount from their supplier if they were to provide you with a television.

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