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When you take out home contents insurance (Contents insurance is insurance that pays for damage to, or loss of, an individual’s personal possessions whilst they are located within that individual’s home. ), it’s a good idea to make sure your cover is “new for old”.
This means that, if you have to have a damaged or stolen item replaced, your insurer should pay enough for you to buy a new version.
Some policies only include “indemnity” cover, which will take wear and tear into account and therefore pay out less.
But there are a few catches to watch out for. Many policies will not provide new-for-old cover on things such as clothing, bed linen and even pedal bikes. Check your policy booklet for any exclusions.
Another …
