NEW FOR OLD Meaning and
Definition
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"New for old" is a phrase often used in insurance policies, particularly property insurance, to describe a coverage provision wherein the insurance company replaces or repairs damaged property with new items or components of equal value or quality, rather than reimbursing the insured for the depreciated or pre-damage value of the property.
This provision ensures that policyholders are not financially burdened by having to replace damaged or destroyed items with second-hand or outdated ones, as the insurance company covers the cost of replacing them with new equivalents. It essentially guarantees that the insured receives a modern and equivalent replacement at the time of a covered loss.
The "new for old" concept recognizes that the value of property tends to diminish over time due to wear and tear or obsolescence. By offering this provision, insurance companies aim to provide better customer satisfaction and to maintain fairness in compensation, allowing policyholders to restore their possessions to their previous condition without additional expense.
However, it is important to note that the terms and conditions of the "new for old" provision may vary depending on the individual insurance policy. Certain limitations, deductibles, or exclusions may apply, and it is crucial for policyholders to carefully review their insurance policy to understand the extent of coverage provided and any specific requirements or conditions that must be met to benefit from the provision.
Common Misspellings for NEW FOR OLD
- bew for old
- mew for old
- jew for old
- hew for old
- nww for old
- nsw for old
- ndw for old
- nrw for old
- n4w for old
- n3w for old
- neq for old
- nea for old
- nes for old
- nee for old
- ne3 for old
- ne2 for old
- new dor old
- new cor old
- new vor old
- new gor old
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