In the event of a loss, our cover is designed to get you back into the same situation you were in before the loss occurred. The replacement value of an item is the price of the item right now. So the cost of replacing an item probably isn’t the same as the price you originally paid. 

For instance, you may have bought your bicycle 3 years ago. Therefore you need to declare the value of the item at 3 years old and not brand new. 

If you are unclear on the value of your item, the best thing to do is declare the value from when you bought it, but you may be able to find current market value information by finding equivalent items on sites like the refurbished apple store. 

This value determines your item sum insured and therefore the maximum we would spend on a replacement item in the event of a loss. (Our aim is always to repair or replace items rather than providing vouchers or cash).

Make sure you don’t declare a replacement value that is too low otherwise in the event of a claim you will have to pay an additional proportion of the claim on top of the excess.

For example:

Lets say you state the replacement value of a laptop as £500 when it would actually cost £1000 to replace.  In the event of a total loss you will receive a contribution of £500 or be required to pay an additional amount on top of your excess in order to receive an equivalent item. 

If you have further queries about this please contact us through our chat function and we can help you out.

Did this answer your question?