Insurance refusing new for old value

Stompymcstomperson

I have complained about the settlement figures offered in regard to my stolen items and today the customer care team called me and said they arent budging on the offered amounts as my policy says like for like and not new for old and they only have to offer second hand price for DVDs.
I have posted the policy wording below, is it worth me going to the ombudsman or not. Thanks for your help.

1. The Sum Insured
Standard cover - the sum insured shown on your Schedule must be at
least equal to the full cost of replacing the property “as new”.
2. Settling Claims (not applicable to liability claims)
We can choose to settle your claim by
• replacing;
• reinstating;
• repairing;
• payment.
Replacement will be on a like for like basis or based on the nearest
equivalent in the current market. If we can repair or replace property
but agree to make a cash or voucher settlement we will only pay you
what it would cost us to repair or replace it. If your dishwasher, washing
machine, refrigerator, tumble drier or freezer are damaged and require
a full replacement we will, where you agree, replace them with an
equivalent appliance which has an Energy rating of A.



Half of this isn't relevant but surely DVDs should be replaced on a new for old basis? As far as im aware my whole policy is indeed a new for old policy.
:A

jonesMUFCforever

It says that replacement will be on a like for like basis or the nearest equivalent in the CURRENT MARKET.
If it was me I would get a cash settlement for them and buy the DVD 's I really want to own again for pennies on E-Bay or Amazon etc.

tempus_fugit

Stompymcstomperson wrote: »

I have complained about the settlement figures offered in regard to my stolen items and today the customer care team called me and said they arent budging on the offered amounts as my policy says like for like and not new for old and they only have to offer second hand price for DVDs.
I have posted the policy wording below, is it worth me going to the ombudsman or not. Thanks for your help.

1. The Sum Insured
Standard cover - the sum insured shown on your Schedule must be at
least equal to the full cost of replacing the property “as new”.
2. Settling Claims (not applicable to liability claims)
We can choose to settle your claim by
• replacing;
• reinstating;
• repairing;
• payment.
Replacement will be on a like for like basis or based on the nearest
equivalent in the current market. If we can repair or replace property
but agree to make a cash or voucher settlement we will only pay you
what it would cost us to repair or replace it. If your dishwasher, washing
machine, refrigerator, tumble drier or freezer are damaged and require
a full replacement we will, where you agree, replace them with an
equivalent appliance which has an Energy rating of A.



Half of this isn't relevant but surely DVDs should be replaced on a new for old basis? As far as im aware my whole policy is indeed a new for old policy.
:A

Why, when your policy clearly states "like for like"? The clause about the sum insured is not relevant to the replacement of the stoeln items.

bigisi

If you want a new for old policy, probably best to buy one which offers that next time. This one doesn't - obviously.

sal_III

Stompymcstomperson wrote: »

Half of this isn't relevant but surely DVDs should be replaced on a new for old basis? As far as im aware my whole policy is indeed a new for old policy.
:A

What makes you believe it's "new for old" policy, when it clearly states the replacement will be like for like?

"1. The Sum Insured" is the value you are insuring, which is as if the goods are new. It's not the replacement/compensation policy.

Stompymcstomperson

It says "replacement" will be on a like for like basis, however the items arent being replaced, I am receiving a payment for them.

This is a new for old policy.
:money:

Stompymcstomperson

Well I called m and s insurance earlier today on withheld number and asked about there standard cover and I was told all policies are new for old as standard.
I am fully aware this is a new for old policy, different interpretations of the policy wording would give a different impression in regard to my previous reply. :money:

davidwatts

Personally, I think the reference to "like for like" is a read herring and has nothing to do with whether or not claims are settled on a new for old basis or with a deduction for wear and tear etc. I've seen similar wordings in new for old policies and it's more to do with replacing items with an equivalent product rather than the exact same make and model.

I don't think you've quoted the relevant part of the policy wording to make it clear whether your cover is new for old or not (though it seems odd that your sum insured has to be on an "as new" basis if not). It might help if you say who the insurer is.

If the policy is not new for old, it should clearly state that claims will be settled on the basis of the cost of replacement as new less an allowance for any wear and tear (or something similar).

TSx

Are the DVDs still available to buy new (at retail prices, not inflated ones)? If they are, I would say the new price is the one to settle on. If not, the second hand price is appropriate.

Manxman_in_exile

Stompymcstomperson wrote: »

Well I called m and s insurance earlier today on withheld number and asked about there standard cover and I was told all policies are new for old as standard.
I am fully aware this is a new for old policy, different interpretations of the policy wording would give a different impression in regard to my previous reply. :money:

Simple matter of going back to the claims people then and telling them that you've had it confirmed to you that it's new for old and that they are mistaken. Tell them to contact whoever you spoke to. (You have the name of the person you spoke to, time and date of conversation etc?)


I do note, however, that you didn't seem to ask them about your particular policy and only got a general "all standard policies are new for old." Is that what you have?

Stompymcstomperson

I sourced the price of 250 DVDs myself from Amazon which they requested and put them on a spreadsheet with the link attached to it for the price. Then took an average cost of them all.