neuwert

Neuwert is a German term meaning replacement value or current new value. The word combines neu (new) and wert (value) and is used primarily in insurance, valuation, and real estate appraisal to denote the amount required to replace an object with a new one of the same kind and quality at current prices.

In insurance, Neuwert contrasts with Zeitwert, which is the depreciated value. A Neuwert policy covers losses up to the cost of acquiring a new item, excluding wear and tear, age, or obsolescence as defined by the contract. The term is closely related to Wiederbeschaffungswert, another commonly used designation for replacement cost.

In practice, Neuwert is applied in different contexts. For household contents, it means the price of a new replacement item. For vehicles, it implies the price of a new vehicle of the same model and specifications available at the time of loss, potentially including delivery and installation costs. In building or property insurance, Neuwert may refer to the reconstruction or replacement cost to rebuild a building to its original condition using current construction prices, rather than its market value.

Differences with Zeitwert can be significant, as Zeitwert accounts for depreciation and the item’s age. Some insurance contracts guarantee Neuwert up to a fixed cap or within a defined period after an event, and may include conditions about replacing with an identical or equivalent item.

See also: Wiederbeschaffungswert, Zeitwert, Reproduktionswert.