Arises out of the normal use of property and is excluded from property insurances although would not, in any event, be embraced by terms such as ‘accidental damage. However, ‘new for old’ policies disregard wear and tear in claims settlements. See REINSTATEMENT POLICIES.
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The amount deducted from a claims payment in recognition of the depreciation of the property insured through usage of it over time. Where cover is provided on a ‘new for old basis’ ie where the insurer agrees to replace an old item with a similar new one, no such deduction is made.