How we work out your settlement

We pay the lower of two amounts: what it costs to repair the item, or what the item is worth now.

How we work out what an item is worth now

Items lose value as they age. We take what the item cost new and reduce it by a set percentage for every year of its age.

The percentage depends on the item. Things that wear out quickly in a rental lose value faster than things that don’t. A fabric sofa loses 15% of its original value each year. A solid wood dining table loses 10%.

An item is never valued below 10% of what it cost new, however old it is.

An example

You bought a fabric sofa for £1,200 and it’s four years old. Fabric sofas lose 15% of their original value each year.

1. Four years at 15% is 60%.
2. £1,200 less 60% gives a current value of £480.
3. Your repair quote is £450.
4. We pay £450, because repairing the sofa costs less than the sofa is worth.

If the repair quote had been £600, we’d pay £480, the value of the sofa, not the cost of the work.

Repairing or replacing

Where an item is replaced, we replace it with something of equivalent specification. We don’t upgrade it.

What we take off

If you’ve already received money towards the damage from the guest, a deposit, or anywhere else, tell us when you submit your claim. We’ll take it into account.