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.
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.
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.
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.
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.
The following tips could help reduce the risk of having to make a buildings insurance claim:
And for contents insurance:
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.
Compare home insurance quotes to find the right policy for you.
comparethemarket.com uses cookies to offer you the best experience online. By continuing to use our website, you agree to the use of cookies. If you would like to know more about cookies and how to manage them please view our privacy & cookie policy.
