New for Old vs Market Value for Older Static Caravans (Static Caravan Insurance Guide)
Learn New for Old vs Market Value for older static caravans: payouts, eligibility, and how static caravan insurance premiums typically react—plus key pitfalls.
If you’re reviewing static caravan insurance, one decision has an outsized impact on your payout after a major claim: New for Old vs Market Value for older static caravans.
These are settlement bases—the method your insurer uses to calculate what they pay if your caravan is written off (or damage is so severe it’s effectively a total loss).
Before you choose, it helps to understand the fundamentals of cover, exclusions, and add-ons here:
What does “New for Old” mean for older static caravans?
New for Old (sometimes called “replacement as new”) usually means: if your static caravan is a total loss, the insurer aims to replace it with a brand-new equivalent, or pay the new replacement cost (subject to limits and policy wording).
For older static caravans, New for Old is often:
- restricted by age and condition, and/or
- offered only if certain criteria are met (maintenance evidence, security, etc.).
Where New for Old is most valuable
New for Old tends to matter most when the replacement gap is large—i.e., the difference between what your older static is worth today and what a brand-new equivalent costs.
What does “Market Value” mean for older static caravans?
Market Value settlement means: if your static is a total loss, the insurer pays what it was worth immediately before the incident (its second-hand value).
That value is typically based on:
- make/model/year, spec, and condition
- comparable listings/sales evidence
- declared upgrades/extras (where relevant)
Market Value is common for older static caravans because it aligns payout with depreciation.
New for Old vs Market Value: quick comparison
When to choose New for Old for an older static caravan
Choose New for Old when most of these are true:
- If it’s written off, you’d genuinely buy a new replacement.
- You don’t want to fund a big gap between market value and new replacement cost.
- Your caravan meets the insurer’s age/condition rules (if applicable).
- You want maximum resilience against large-loss events (fire, major storms, etc.).
When to choose Market Value for an older static caravan
Choose Market Value when most of these are true:
- You’d replace your caravan with another used static of similar age/spec.
- New for Old isn’t offered (or isn’t cost-effective) for your age bracket.
- You want a lower premium and can accept a lower maximum payout.
- You’re primarily protecting against catastrophic risks but not trying to “reset to new.”
How static caravan insurance premiums typically react
In most cases:
- New for Old premiums are higher than Market Value because the insurer’s potential total-loss payout is larger.
- Market Value premiums are lower because the maximum payout is capped to a depreciated value.
Why the price difference can vary a lot
Even with the same settlement basis, your premium can shift based on:
- park/location risk profile
- periods of unoccupancy
- claims history
- security measures
- excess level
- add-ons such as accidental damage, contents, liability
If you want to tighten the risk side (and potentially your premium), this is a useful companion read:
Don’t miss this: value, extras, and “what counts” as covered
With both settlement types, a common mistake is focusing only on “New for Old vs Market Value” and forgetting the insured value and declared extras.
For older statics, make sure you’ve considered:
- permanent fixtures (e.g., decking/veranda/skirting)
- outbuildings/ancillary items if relevant
- clearance/removal costs after a major claim (policy dependent)
A good general starting point (to cross-check what cover normally includes) is:
And if you rent out your static, align cover with usage:
Common pitfalls (and how to avoid them)
1) Assuming a big “sum insured” automatically means New for Old
A high limit doesn’t always change how a claim is settled.
Fix: confirm the basis of settlement in the policy wording.
2) Not declaring value-driving additions
Decking, upgrades, and fixed extras can materially change what you need to insure.
Fix: document major additions and ensure they’re included appropriately.
3) Getting caught out by winter water damage
Older statics can be more exposed to escape-of-water issues.
Fix: follow a proper winter shutdown process:
4) Confusion around damp and exclusions
Damp claims depend heavily on cause and wording.
Fix: read this before assuming it’s covered:
FAQs
Is New for Old worth it for older static caravans?
It can be—if you would replace with a new unit after a total loss and the premium uplift makes sense versus the replacement gap. If you’d replace with used, Market Value is often the more rational fit.
Is Market Value static caravan insurance cheaper?
Often yes, because the insurer’s payout is capped to a depreciated figure. However, location risk, security, and cover options can influence pricing significantly.
How do I decide between New for Old vs Market Value for older static caravans?
Ask yourself one question: “If it’s written off, will I replace with new or used?”
- If new → New for Old (if available and cost-effective)
- If used or exit → Market Value
If you’re comparing options now, start with the core cover page and then get a quote with consistent details:
- https://www.insuremy.co.uk/caravan-insurance/static-caravan-insurance/
- https://www.insuremy.co.uk/caravan-insurance/caravan-insurance-quote/
