Unlocking Savings: Understanding Home Insurance No-Claims Discounts

Discover the savings waiting for you with a no-claims discount (NCD) on your home insurance. Much like its counterpart in motor coverage, refraining from filing a claim throughout your policy duration can translate into financial benefits for you and savings for your insurer. Embracing an NCD serves as an incentive to handle minor incidents without filing a claim.

Key Insights:

  • NCDs can be accumulated on your home insurance policy, mirroring the process in motor insurance.
  • Making a claim, regardless of fault, typically impacts your NCD.
  • Some insurers offer options to protect your NCD with an additional premium.

Securing Your NCD: A How-To Guide

When obtaining a new quote, ensure you specify the years of NCD you've accrued. If not prompted, reach out to your insurer to address this crucial detail. This information aids in determining your new premium, and in certain cases, insurers may request proof of your claim-free history, obtainable from your current insurer if not documented.

Distinguishing NCDs: Home vs. Auto

NCDs operate similarly across home and auto insurance, yet one key disparity exists. While fault claims solely affect your NCD in auto insurance, both fault and no-fault claims impact your NCD in home insurance scenarios.

Estimating Savings: The Potential of Home Insurance NCDs

The amount of savings achievable varies by insurer. Initially, expect around a 10% discount, with the potential to reach a 50% or higher discount after accruing five years of claim-free history.

The repercussions of making a claim on your NCD hinge on your insurer and the duration of your claim-free history. Depending on these factors, you may risk losing or reducing your NCD, prompting careful consideration before filing a claim, especially for minor incidents.

Future-proofing Your Home: Minimising Claim Incidents

Implement preventive measures to mitigate the likelihood of filing a home insurance claim, safeguarding against disruptions during repair processes.

  • Maintain your property diligently, addressing maintenance issues promptly to prevent escalation.
  • Bolster home security with burglar alarms, lighting, and sturdy locks.
  • Prioritize fire safety with smoke alarms and cautious handling of fire-related items.
  • Exercise caution with DIY projects, opting for professional assistance when necessary to avoid mishaps.

Preserving Your NCD: Exploring Protection Options

Certain insurers offer NCD protection for an added premium, ensuring the retention of your accrued discount even in the event of a claim.

NCD: Covering Both Contents and Buildings Policies

While specifics vary by insurer, opportunities exist to accumulate NCDs on both contents and buildings insurance policies.

Cross-Policy Impact: Contents Claims vs. Buildings NCD

In instances of combined coverage, filing a claim on one policy should not affect the NCD of the other. However, it's advisable to confirm this with your insurer.

Portability of NCDs: Transferring to a New Insurer

Transferring your NCD to a new insurer is typically feasible, contingent upon continuous coverage. Be sure to clarify any conditions with your prospective insurer before making the switch.


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

Any claim will be marked on your record and will mean losing all or some of your precious NCD. If you think you’re likely to make a claim, you can always buy extra NCD protection.

How can I protect my home insurance no-claims discount?

A NCD protection policy can take the pressure off, allowing you to make one or two claims in a year without it impacting your all-important claim-free record – and the discount.

If you make a claim on your home insurance, even though your discount will be protected, it will almost certainly increase your premium when you renew your cover because insurers will see you as higher risk.

How can I find out how much home insurance no-claims discount I have?

It’ll be displayed on any insurance documents you might have been sent, or you can ask your insurer to confirm it to you in writing. It’s worth checking this before you start comparing quotes so you have the correct information to hand – and can get a more accurate quote.

How do I get proof of my home insurance no-claims discount?

If you’re switching to another more competitive insurer, you might be asked to provide proof of your level of NCD before the all-important discount will be applied.

You should be able to find it on your insurance renewal documents. You’ll usually also be able to log into your insurer’s website and view details of your policy, including how many years of NCD you have accumulated.

If not, you can call your insurance company - making sure you have your policy number handy - and ask. If you need written proof, you can request a letter from your insurance provider confirming your NCD.

Do home insurance companies share claims history?

Yes, so it’s important to be truthful in your application to new insurers when it comes to your no-claims history. Most insurers share information using the Claims and Underwriting Exchange (CUE) - a central database of incidents reported to insurance companies, whether they resulted in a claim or not.

This information helps insurers to reduce the number of payouts they make for false claims. And it also helps them set the right price for your insurance.

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