New value (insurance law)

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The new value is a term from insurance law . The new value is the amount that “has to be raised for replacement in order to receive a new item of the same type, quality and function”, ie the replacement value on the day of the damage.

Demarcation

The new value must be distinguished from the current value , the common value and the replacement value .

In principle, the fair value is agreed in accordance with Section 88 VVG. New value insurance must therefore be explicitly agreed in the terms and conditions.

The new value is differentiated by the fact that the new value does not include the “deduction of the lower value resulting from the difference between old and new”.

Special case: sliding new value

In particular in the insurance of buildings threatened by price increases a underinsurance . The sliding new value , which is usually agreed here, is intended to counteract this. The advantage of this calculation method is that the sum insured is automatically adjusted annually based on an objective standard (construction price index of the Federal Statistical Office).

Hand in hand with a sliding new value insurance usually goes an underinsurance waiver if the sum insured has been determined based on objective criteria. It is also logical that the premiums are also adjusted annually to the same extent.