There are two main types of Home Contents policies – “replacement as new" (commonly referred to as ‘new for old’) or "indemnity".
Under an indemnity policy, a deduction will be made from your claim settlement to account for wear, tear and depreciation. TOP
 
A ‘new for old’ policy covers the full cost of repairing damaged items, or in the case of stolen or destroyed items, the cost of replacing them with equivalent new items.

Even if you have a ‘new for old’ policy, not all items will necessarily be covered on a ‘new for old’ basis; most insurers will only cover certain items (normally clothing and linen) on an indemnity basis - i.e. a deduction for wear and tear is made depending upon the age of the damaged or lost item. In addition, some insurers will only cover certain items on a ‘new for old’ basis if they are under a certain age. TOP