Age deduction
Deductions are the amount by which the value of a belonging or asset is reduced. The age deduction is the value decrease on what is to be reimbursed depending on the time since purchase and to correspond to market value. If the market value cannot be determined in a claim, it is determined at what it costs to acquire a new equivalent object, but with deduction for age, wear and tear, obsolescence, reduced usability and other circumstances.
When an object is to be replaced, your compensation is therefore reduced depending on the object's age and how it has been used up to the time of the damage. The compensation is the amount paid to the policyholder in a claim when it is covered by the terms of the insurance. In most cases, you also need to pay a deductible to use the insurance, which will be deducted from your compensation.
What is meant by full reimbursement?
Insurances often apply with a maximum amount of compensation. When any form of insurance provides what is called full payment, full reimbursement or full coverage, it would mean that an object or property is insured to its full value without any limitation – compensating the full amount of cost to replace it in case of damage or loss. The claim needs to be covered by the insurance policy, and age deduction can still be used to correspond with an object's current value.