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Home insurance no claims discount - how does it work?

Home insurance no claims discount - how does it work?

Although you’d usually associate a no claims discount with car insurance, it’s also possible to benefit from a no claims discount on your home insurance. Find out how.

Chris King
From the Home team
minute read
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Posted 27 FEBRUARY 2020

How do I get a no claims discount on my home insurance?

Home insurance policies typically allow a no claims bonus to be built up over a period to a maximum of five years.

If you don’t make a claim over 12 months, the next year you could receive a discount on your home insurance premium. If you don’t make a claim in the second successive year, you could receive an even bigger discount, and so on up to five years.  

To qualify for a no claims discount (NCD) you’ll need to keep your home insurance for a continuous period. Many insurance providers will also let you carry over your no claims bonus and transfer it to a new policy if you change providers.

Is a no claims bonus for my home the same as for my car?

Not quite; unlike car insurance, home insurance providers don’t distinguish between ‘fault’ and ‘no-fault’ claims when it comes to discounts. If you don’t claim in a 12-month period, you could benefit from a discount for the following year. 


How much could I save?

After the first year, a no claims discount could save you around 10-15% on your home insurance premium, then up to 40 or even 50% after five years.  

The amount of discount offered varies between providers, so it’s a good idea to shop around before committing to a policy. Also, be aware that insurance providers also consider different factors when calculating the cost of your insurance premium, for example, if there’s been particularly bad weather that year that could push up the price of your policy. Changes such as an increase in Insurance Premium Tax (IPT) could also affect the final total. 

When should I claim on my home insurance?

If you’re intending to claim for a small amount, such as minor damage or theft of a low-value item, you could lose your no claims bonus, so you might prefer to not make a claim, especially when weighing up the cost of your excess too. It may be cheaper to pay for the replacement or repair costs yourself.

If you’re claiming for a considerable amount of damage or high-value theft, then you’re probably better off going ahead with the claim. It’s up to you whether it’s worth making a claim or not. Remember to consider how much excess there is, and any possible premium increases if you do claim.  

Making a claim on your buildings insurance usually won’t affect the NCD on your contents insurance, and vice versa. But always check your policy to be sure. 

How can I reduce the chances of having to make a home insurance claim?

The following tips could help reduce the risk of having to make a buildings insurance claim:

  • install a smoke alarm
  • carry out regular property maintenance checks and keep your property in a good state of repair
  • insulate your pipes to prevent them freezing over the cold winter months

And for contents insurance:

  • install a burglar alarm or motion sensitive lights outside to deter possible thieves
  • fit window locks
  • place valuables out of sight
  • get a lockable safe and store bank statements and personal documents to avoid identity theft
  • lock up outbuildings such as garden sheds and garages
  • store ladders away when you’re not using them

No claims discounts and premium prices vary between different insurance providers, so it makes sense to compare a range of home insurance policies before committing to one.  

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