Home insurance no claims discount - how does it work?

You’d usually associate a no claims discount with car insurance, but did you know you can also benefit from a no claims discount on your home insurance?

Andy Webb

Insurance expert

minute read

Do you know someone who could benefit from this article?

Last Updated 14 MARCH 2022

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

Home insurance policies typically allow you to build a no claims discount (NCD) for a period of up to five years.

Just like with car insurance, if you don’t make a claim for 12 months on your home insurance, you could get a discount on your premium the following year. And, again as with your car insurance, if you don’t claim the year after that, you could receive an even bigger discount, and so on for up to five years.

To qualify for a NCD, you’ll need to keep your home insurance for at least a year. After that, you don’t necessarily need to stay with the same insurance provider to keep your NCD as many will let you transfer your discount to a new policy if you switch insurance providers.

Does a no claims bonus for my home work the same way as for my car?

Not quite, as unlike with car insurance, home insurance providers don’t need to know whether a claim was your fault. It’s simple, if you don’t claim for 12 months, you could receive a discount the following year.

How much could I save?

Your no claims discount will vary, depending on your insurance provider, so shop around before you commit.

It’s good to be aware that insurance providers take into account various factors when calculating your premium. For example, especially bad weather or an increase in Insurance Premium Tax (IPT) could push up the price of your policy, which means that the cost of your cover could still go up even if your no claims discount increases.

When should I claim on my home insurance?

It’s only ever worth claiming on your house insurance if the value of the item you’re claiming for exceeds the cost of claiming. If you’re claiming for minor damage or the theft of something inexpensive, it may not be worth making a claim because you could lose your no claims discount and have to pay an excess – the amount you’ve agreed to pay towards any claim. It could be cheaper to just replace the item or pay the repair costs yourself.

However, if you’re claiming for large-scale damage or the theft of something valuable, it’s likely to be better to make a claim. Even then, you should weigh up whether it’s worth it as you’ll need to consider how much excess you’ll have to pay and whether your premium will increase if you claim.

Will claiming on my contents insurance affect the no claims discount on my buildings insurance?

Happily, no. Making a claim on your buildings insurance won’t usually affect the NCD on your contents insurance, and vice versa, but check your policy to be sure.

How can I lower my chances of having to make a home insurance claim?

These tips could reduce the chance 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 and/or some motion-sensitive lights outside to deter thieves
Fit window locks
Keep valuables out of sight
Store bank statements and personal documents in a safe to avoid identity theft
Lock outbuildings, such as garden sheds and garages
Store ladders out of sight when you’re not using them

As with any type of insurance, no claims discounts and premium prices vary among providers, so it makes sense to compare a range of home insurance policies before committing to one.

Frequently asked questions

Do no claims discounts cover contents or buildings insurance?

You could actually get a no claims bonus for both types of insurance - ask what discounts providers offer when you’re shopping around for your policy.

Is there anything I can claim for without losing my no claims discount?

Yes, there are certain home insurance add-ons you may be able to claim for without affecting your discount. These are:

But each policy will differ, so be sure to read the small print.

Can I make a claim and keep my no claims discount?

Some insurance providers will let you make a claim and keep your no claims bonus if you pay a fee. They may also ask that you’ve clocked up a certain number of years without making a claim.