Replacement Value Replacement value (new-for-old) is the basis for setting sums insured on most household and possessions policies.

What is replacement value?

Cost of buying a new equivalent today. As a King Price client you will see replacement value referenced on your policy schedule, in your claim documents, or in conversations with client care on 0860 50 50 50.

How replacement value works

replacement value is governed by the terms set out in the King Price Policy Document and the individual schedule issued for your policy. Your schedule always overrides the master wording where they differ, so the values, limits and conditions that apply to you appear there in plain English.

King Price reviews the application of replacement value at every renewal, and any change to your risk profile, address, vehicle, security or claims history is taken into account. The Treating clients Fairly framework requires this detail to be communicated clearly before any change takes effect.

Example

Anele runs a small business from her home in Durban. R8k couch from 2020 costs R14k new today , insure for R14k. In this scenario, replacement value determines the practical outcome for the client. The exact numbers depend on the cover option, the excess on the schedule and the limits set out in the policy document.

Why replacement value matters

Understanding replacement value helps King Price clients make better decisions about cover. It affects the monthly premium, the payout at claim stage, and the steps required before and after an incident. Getting it right means no surprises at claim time.

King Price aims to make insurance great again with plain-English wording, transparent premiums and a direct relationship with clients. Clear terminology like replacement value is part of that promise.