How does No Claims Discount work for home insurance?

March 8, 2022

Not all home insurance policyholders are aware that similar to a No Claims Bonus you can build up for not making a claim on your car insurance, you can similarly build up a NCD on your home insurance for not making a claim too.

Read our comprehensive guide to find out absolutely everything you should know about a home insurance policy No Claims Discount including how to avoid making a costly claim to save money on your future insurance premiums.

What does NCD stand for?

How can I get house insurance No Claims Discount?

How long does No Claims Bonus last?

How long does NCD last without home insurance?

What is a protected No Claims Bonus?

How can I check my home insurance no claims?

How much discount do you get on your house insurance?

How can I avoid losing my No Claims Bonus?

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What does NCD stand for?

  • NCD is an abbreviation for ‘No Claims Discount’ or NCB means ‘No Claims Bonus’.
  • Both NCD and NCB mean exactly the same thing: they are both a discount/bonus awarded to you by your insurer for not making a claim on your car or house insurance for a continuous 12-month period.
  • The ‘discount’ or ‘bonus’ is applied to your car or house insurance premiums the following year meaning you will pay less than you otherwise would’ve done for every year’s NCD or NCB you’ve built up by not making a claim. However, your premiums could still increase but will not increase as much as they would’ve done without an NCD.
  • Depending on your insurer, a No Claims Bonus can be applied separately to two policies (i.e. your home buildings and home contents policy), which can be useful for tenants who only require contents cover.
  • NCD and NCB can be used interchangeably.

Read: Top 10 home insurance tips for first-time buyers

How can I get house insurance No Claims Discount?

By not making a claim on your domestic property insurance for a full 12-month period.

Obviously, despite your very best efforts to avoid this, there will be times when you HAVE to make a claim for costly damage such as a house fire or burglary.

However, if you avoid making claims for low cost incidents, you can save money on your premiums by retaining your no claims. So it’s always worth comparing how much of a discount you could lose should you make a claim (i.e. how much more expensive your premiums will be) compared to how much it will cost to fix or replace damage caused to your property or its contents.

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Jump to: How can I avoid losing my No Claims Discount?

How long does No Claims Bonus last?

A house insurance NCB does not continue building up for quite as long as a car insurance NCB; the bonus will typically peak at an approximate 70% discount after four to five solid years of you not making a claim.

How long does NCD last without house insurance?

It doesn’t. Unlike car insurance where you’re usually allowed a small break in cover of between 18 months to 2 years without losing your no claims, most house insurance providers will write off your NCB should you have any break in cover at all.

However, the good news is that just like a car insurance policy’s claims discount, your home NCB is transferable to other insurers meaning you are free to shop around for a better house insurance deal without losing your discounted bonus.

What is a protected No Claims Bonus?

Some insurers will offer an add-on to your home cover to protect your home insurance No Claims Discount. House insurance with protected no claims means you can make a certain number of claims up to a certain limit over a specified time period (typically three to five years) without losing or only slightly affecting your NCD.

How can I check my house insurance no claims?

You should be notified about your NCB in your insurance renewal letter (or cancellation notice if you’re switching providers).

If this information is not volunteered you should ask your insurer how many years no claims you have and ask them to confirm this to you in writing so you have home insurance no claims proof for a new insurer in the event you decide to switch.

Read: 10 things that could void your home insurance

How much discount do you get on your house insurance?

The discount applied to your premiums will vary between insurers but most insurance companies will offer up to around 30% off premiums for a whole year’s no claims up to approximately 70% for the maximum of five years.

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How can I avoid losing my No Claims Bonus?

To avoid losing your NCD you of course need to avoid making a claim and there are many preventative measures you can take to boost your chances of not having to claim on your house insurance policy such as:

You can avoid having to make a fire damage claim by:

  • Installing smoke alarms and regularly checking they work
  • Making sure you have a fire blanket and/or working fire extinguisher
  • Getting your electrical wiring and fuse board checked by a professional electrician
  • Not using open flame sources such as a traditional open fire, burning candles or smoking indoors
  • Making sure you do not overload sockets or extensions by plugging in too many appliances
  • Keeping combustibles aware from heaters or fireplaces
  • Making sure a pet doesn’t chew through your electrical cables
  • Closing internal doors at night before you go to bed

You can avoid making a flood or storm damage claim by:

  • Checking for loose roof files
  • Cutting down or severely pruning any nearby tall trees
  • Using sandbags at entry points and moving high-value items upstairs (or in the loft if in a bungalow) when a flood alert is in place
  • Reinforcing your garden fencing
  • Clearing out your gutters and drains
  • Securing outside loose items such as ladders, especially when a storm is coming

Read more: Does home insurance cover storm and flood damage?

You can avoid making a burglary or theft claim by:

  • Securing your home using insurer approved locks
  • Not leaving any downstairs windows open, even when you’re at home
  • Using a hidden and secure safe to store valuables in
  • Not posting pictures of you on holiday on social media
  • Putting lights on a timer to turn on at night when you’re away from home
  • Having a gravel driveway or path so you or your neighbours can hear someone approaching
  • Making sure your front fences are only one-metre high so neighbours have a clear view of your property and potential intruders
  • Planting prickly and thorny hedging as a rear boundary to your property to deter would-be thieves
  • Using security cameras, smart doorbells, security lights and/or alarms - a Which? survey revealed that a whopping 71% of burglars were deterred by a home with an alarm system, especially with a visual siren

You might like: Everything you need to know about unoccupied house insurance

You can avoid claiming for accidental damage by:

  • Not being clumsy - admittedly this is downright impossible for many of us!
  • Child-proofing or pet-proofing your home - many policies do not cover pet damage
  • Not watching a YouTube video on DIY and whizzing off with your amateur toolset thinking you’re the new ‘Tommy Walsh’
  • Not drinking around electrical equipment such as a laptop or computer (unless you use a sippy cup!)
  • Using a professional removals firm when moving house
  • Keeping vermin and pests at bay
  • Absent-mindedly leave a tap running

For more helpful and detailed information about house insurance, check out our Home Insurance Frequently Asked Questions page.

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