What does ‘new for old’ mean?
New for old is the term used to describe the basis of how an insurer will replace any possessions that are damaged or destroyed. Items will be replaced with a new one, irrespective of their age. For example, if your 7 year old television is destroyed in a fire, the insurer will provide you with an equivalent model at today’s prices (i.e. the value to cover the cost of purchasing a new one).
No deductions are made for wear and tear.