Home Insurance & No Claims Discounts

Most home insurance companies will offer a discount on your premium if you don't make a claim on your policy. The discounts vary across insurers, but they can be a great way to cut the cost of cover, sometimes by as much as 70%.

How does a no claims discount work?

If you don't make a claim during the policy year, you should be offered a discount at renewal - and the discount could cut the cost of your premium by 30%. It doesn't stop there. The more years you are claim free, the bigger the discount. If you build up a no claims discount (NCD) over five consecutive years or more, the price of cover could drop by up to 70%.

Always think before you make a claim on your home insurance because even a small claim can wipe out an entire NCD. If, for example, the claim is only for a small amount - perhaps not much more than the policy excess - then it is probably best to stump up the money yourself.  

Can I take my discount with me if I switch insurers?

If you switch to another insurer, you will usually earn a discount if you have not made any claims on a previous policy. So you don't have to renew with your existing firm to benefit from your clean claims record. It often pays to shop around because a different insurer might offer a bigger discount and a cheaper premium.

Can I benefit from my husband's discount?

The NCD usually builds up in the name of the policyholder, so it's a good idea to take out home insurance in joint names. If the policy is in joint names, you can also make a claim if you husband or flatmate is, say, temporarily out of the country.

What happens to my NCD if I have combined buildings and contents cover?

If you take out buildings and contents cover with the same insurer, a claim on one policy should not affect your NCD on the other. But always read the small print to make sure you understand the terms and conditions. 

Can I protect my no claims discount?

Some insurance companies allow you to protect your NCD, once you have built up four years no claims. The protection comes at a price, but it is often worth the money because it allows you to make a small number of claims against your insurance without losing the discount you have already accumulated.

Our comparison tool allows you to compare home insurance with protected no claims so you can see how much it will cost to secure your discount.

How to avoid claiming on your home insurance

A no claims discount can be worth a lot of money, so it makes sense to minimise the likelihood of a claim. Here are a few tips to help you safeguard your discount.

• Install a burglar alarm and ensure all doors and windows are locked
• Insulate pipes and tanks so they don't freeze in cold weather. 
• If you live in an area where flooding is a danger, follow the Environment Agency's advice to help protect your home and sign up to its flood warning scheme.
• Install and regularly test smoke alarms.
• Trees can affect the soil and can cause damage to property, so take professional advice before planting or felling trees.