If so, don’t worry. We’ve all been there!
To be fair, the insurance industry has made a huge amount of progress in simplifying the language it uses but we’re going to try and help. Here, we’ll be looking at the terms ‘new for old’ and ‘market valuation’.
If you’re unfortunate enough to suffer loss through theft or say a fire, you’ll be looking to your insurer to give you the money to replace the item or items that have now gone. In some cases that might include the insurer not just giving you a cheque but actually purchasing the replacement item for you.
The question in such situations is; who decides how much the item was worth? It’s not as simple as it might sound.
Take that PC that’s just been stolen. Perhaps you purchased it 12 months ago for 1,000$. However, today it’s perhaps only worth, if you bought one second-hand, 500$. Would you therefore want a new one as a replacement valued at 1,000$ or a good second-hand one that cost 500$
For more details, please visit - http://www.christchurchremovals.co.nz/removals-insurance-explaining-terminology/
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