What is new for old?

New for old means that you’ll be given the equivalent value of the item that has been lost, damaged or stolen. For example, if your four year old TV is stolen, the policy will pay out for a new one of equivalent value to the original, regardless of the age.  If you have lost, damaged or had an iPhone 5 stolen, for example, it will be replaced for an item for the equivalent value, which in this case would not be an iPhone 6, rather an iPhone 5s. When calculating the sum insured required, you should take into consideration the replacement value of the item rather than the depreciated value of an item.