This is the most popular type of cover and an area which you should really familiarise yourself with. DO NOT make any decisions to buy golf insurance until you fully understand it. So what exactly does ‘NEW FOR OLD’ mean? New for Old should mean that your equipment is replaced at today’s market value regardless of age. However, many golf insurers will only replace your stolen golf clubs with ‘new’ if they are less than 2 or 3 years old AND were brand new at date of purchase!
The reality here is that you could be paying a premium that only provides ‘new for old’ cover for a limited period. After this time it will revert to second hand value — BUT BE CAREFUL — you may continue paying the price for a new for old premium but only receive second hand cover in the event of a claim.
This means that you are insuring your golf equipment for claims settlement based on a value equal to that which you could expect to receive as a trade in or on the second hand market.
Indemnity cover means you are insuring your golf equipment for claims settlement based on its depreciating value from new.
This is an unusual term sometimes used to describe the true market value or the component value of equipment. eg Web explanation: The actual value of the precious metal in a coin and not necessarily its face value.
Tip: if your clubs are more than 2 or 3 years old but you want new for old cover, check the policy document of your chosen provider carefully! Do not fall in the trap of paying a new for old premium and only getting second hand/indemnity/intrinsic cover.