Home Insurance No Claims Discount FAQ


Home insurance no claims discounts can make the cost of cover cheaper – but you still need to check out if the price the insurer is asking is competitive.

If not, you can switch your home insurance to another firm offering a better deal, and often take your discount with you in the same way as you can with car insurance.

Insurance is sometimes confusing, so to help, here are some answers to frequently asked questions about home insurance no claims discounts or ‘NCDs’:

  • So I can build up a no claims discount on my home insurance?

Yes. No claims discounts on home insurance is one way to find cheap home insurance as the discount gives you money off the premium the longer you go without a claim.

  • Why do insurers offer no claims discounts?

The idea is to cut the number of small claims. The insurer saves money by not having to manage the claims and passes the saving on to customers.

  • Why should I bother with a no claims discount?

Cheap home insurance for doing nothing is a good reason.

  • How much no claims discount can I get?

The rate varies between insurers, but the longer you go without making a claim, the more you will save. The discount can add up to anything from 10% to 75%, while some firms have a top limit for an NCD.

  • Should I avoid claiming just to protect my no claims discount?

No. For smaller claims, consider if the claim is cost-effective when you have to pay an excess and may lose some or all your no claims discount.

Don’t forget insurance is designed to cover unexpected events and for larger claims, the discount saving is probably immaterial against the value of the claim.

  • Can I protect my no claims discount?

Yes. Most policies allow you to protect no claims discounts. This may mean paying slightly more on your cover, so check how many small claims can be made before the no claims discount is lost or reduced.

Protecting your no claims discount does not mean the price of your home insurance will not go up if you make a claim, but you will keep the same level of discount.

Remember, home insurance no claims discount terms vary between insurers, so always ask for the terms and conditions when you take out a policy so you can decide whether a claim is worthwhile later.

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