At a glance
A no claims discount (NCD) rewards you with cheaper premiums when you don’t make claims.
You can usually build your NCD year by year, often up to five years.
Discounts vary depending on your insurance provider.
Think carefully before claiming, as it could cost you your NCD and your excess.
How can I get a no claims discount on my home insurance?
As with car insurance, if you don’t claim on your home insurance for 12 continuous months, you could get a discount on your premium the following year.
If you don’t claim the year after that, you may get an even bigger discount, and so on up to a capped maximum – typically after five years.
To qualify for a no claims discount (NCD), you’ll need to keep your home insurance policy for at least a year. After that, many insurance providers will let you transfer your discount to a new policy, so you can switch insurance providers.
Does a home insurance no claims bonus work the same way as on my car?
Not quite. Unlike car insurance providers, home insurance providers don’t need to know if a claim was your fault. If you don’t claim for 12 months, you could receive a discount the following year regardless.
How much can I save with a no claims discount?
Your no claims discount will vary depending on your insurance provider. That’s why it’s worth shopping around and comparing policies before you buy.
It’s also worth remembering that insurance providers consider different factors, other than your claim history, when calculating your premiums.
For example, extreme weather, or a rise in Insurance Premium Tax (IPT), could increase the cost of your policy. This may mean you’ll pay more when you renew, even if you don’t claim.
Is it worth claiming on my home insurance?
It’s only worth claiming on your house insurance if what’s been lost or damaged is worth more than the cost of claiming. If you’re only claiming for minor damage or something inexpensive, it might not be worthwhile.
As well as losing your no claims discount, you’ll have to pay an excess (the amount you contribute towards any claim). So, you could find it’s cheaper to replace the item or cover the repair costs yourself.
If it’s major damage, or the theft of something valuable, it might make sense to claim. But even then, you’ll need to consider how much excess you’ll have to pay and how claiming might affect your premium.
Will claiming on my contents insurance affect the no claims discount on my buildings insurance?
Fortunately, no. Claiming on your buildings insurance doesn’t usually affect the NCD on your contents insurance, and vice versa, even if both policies are with the same provider. But it’s a good idea to check your policy, just to be sure.
How can I lower my chances of having to make a home insurance claim?
Unfortunately, claims can’t always be avoided. But following these few simple tips could reduce the chance of having to claim on your buildings insurance:
Install smoke alarms and check them regularly
Keep your property in a good state of repair – especially things like roofs, gutters and plumbing
Check seals around water-based fixtures – things like sinks, showers and toilets, which could be at risk of leaking
Insulate your pipes to prevent them freezing over the cold winter months
Switch off your mains water supply if you’re away from the property for an extended period
Turn off gas and electricity when you go away.
And here’s how to lower the chances of claiming on your contents insurance:
Install a burglar alarm and/or motion-sensitive lights to deter thieves
Fit window locks
Keep valuables out of sight
Lock outbuildings, such as garden sheds and garages
Store ladders out of sight.
When it comes to home insurance, you’ll find that no claims discounts and premiums vary between insurance providers.
That’s why it makes sense to compare a range of home insurance policies before you buy.
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FAQs
Does the no claims discount cover my contents or my buildings insurance?
Your no claims discount can cover both your buildings and contents insurance. When you’re shopping around for policies, ask insurance providers what discounts they offer.
Is there anything I can claim for without losing my no claims discount?
There are certain home insurance add-ons you may be able to claim for without affecting your discount. These include:
But every policy is different, so it’s worth checking the small print.
Can I make a claim and keep my no claims discount?
Some insurance providers let you make one or two claims in a year and keep your no claims bonus for a fee. But you’ll need to weigh up whether the cost of protecting your NCD is worth it.
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As well as writing for Churchill and Privilege insurance websites, Karen’s CV includes working with M&S, Debenhams, Tesco, Sainsbury’s and John Lewis. With over 20 years of editorial experience for big household names she leads a talented content team with a focus on simplifying personal finance for everybody.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Helen’s our resident home insurance expert, as the former Head of Home Insurance at Compare the Market. She's also experienced with car insurance and pet insurance from her previous roles across commercial, partnerships and as a freelance consultant, working with more than 100 insurers across a variety of insurance products.
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