NEW FOR OLD means insuring your golf equipment for full replacement on a New for Old basis. This level of cover is a necessity in this crime ridden day and age. It is pointless having cover that will only provide a claim settlement based on second hand value, which could mean a payment of less than £500 for equipment valued at over £2000 at today's prices. The older your equipment the worse this gets.
The reality here is that cheap golf insurance only settles claims with brand new equipment if your equipment is less than 2 or 3 years old and was brand new when you purchased it. This is really important because cheap golf insurers will continue charging you a new for old premium but never inform you when your cover changes to second hand only values. You have been warned!
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. For example, 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..