Full replacement value is what it would cost, at today's prices, to replace everything you're storing with new equivalents. In self storage, it's the figure you declare as your goods' insured value.
At Wigwam
Our Contents Protection page calls insuring everything you store for its full replacement value "on a new for old basis" "a condition of the Licence Agreement". You declare it on your Cover Sheet (clause 48: "as stated by You in the Cover Sheet"), and our FAQ says you must understand the total value of your goods "even if you arrange insurance elsewhere". Your Cover Sheet calls it your Replacement Value and our FAQs your Maximum Replacement Value: the same figure.
Our FAQ on calculating a full replacement value says it "must represent the total current cost of replacing all stored property as new", except:
- "household linen and clothing", and motor vehicles, boats and caravans, which allow for age, wear and "consequent market value";
- "any goods which cannot be purchased new (such as antiques or works of art, for example)", at "the current market value";
- documents, at the cost of replacing or reprinting them, "excluding the value of the information contained in the documents".
With our contents protection, clause 48 says the policy covers your goods "for the value stated as the full total replacement value of the Goods as new on the Cover Sheet", and "We do not carry out any valuation of the Goods". Your quote "is based on the full replacement value of your stored items"; the rate isn't published, so ask on 0800 2545585.
With your own policy, clause 31 sets the requirement: "Subject to Clause 48 if applicable, We do not insure the Goods", and requires them to "remain adequately insured by You at all times for their Replacement Value (as set out on the Cover Sheet)". It also says You "must make Your own judgment as to adequacy of cover even when arranged by Us".
Why it matters
For our cover, our plain-English walkthrough says "Under-insurance is settled in proportion". If you declare less and need to claim, the settlement is cut in proportion: declare half the true value and you recover half the loss. For your own policy, its wording sets the rule.
Raise the figure before you add to the unit: you warrant that the goods' value "from time to time will not exceed the insured value" (clause 31); for our cover, clause 48 makes You "responsible for ensuring that insurance cover for the value of Goods insured is maintained at an adequate level". How a change to your declared value is made and when it takes effect isn't published; ring 0800 2545585 before you bring the extra goods in.
Clearing a relative's home? Antiques and works of art go in at market value. Other furniture that can still be bought new falls under the general rule: the cost of replacing it as new.
Storing business stock? Declare your stock at what it would cost you to replace it today, not its selling price and not what you originally paid: our guide puts it as "what it would cost you to replace the stock at today’s cost". Lost sales and profit aren't covered by a storage-goods policy (our terms also exclude "lost profits or business interruption", clause 30(a)); that's a question for your business insurer. Our Summary of Insurance isn't published online, so for how a stock claim is settled, ask us on 0800 2545585.
Related terms: Declared value · Inventory · Contents protection · Legal liability
Related questions: How much contents cover do I need, and can I change it later? · How do I make a claim if something in my unit is damaged?