Can I get a no claims discount on my home insurance?
Published 7 April 2016 by Emily Bancroft
Find out whether you’ll be able to save if you don’t claim.
No claims discounts are a popular way to save on car insurance policies as you can be rewarded for being a safer driver. It means that some insurers will offer you a lower price for your monthly premiums for each year you haven’t made a claim. But will you be able to get the same deal on home insurance?
Although home insurance no claims discounts aren’t as well known, they do still exist. And if you’ve not made a claim on your home insurance in a while, you could make a saving. Let’s take a look at how this works.
No claims for your home
You might have heard no claims discounts referred to as no claims bonuses – they’re the same thing. If your insurer offers a no claims discount, it means the price of your premiums will drop every year you don’t make a claim. This is because your insurer hasn’t had to pay out anything to you in compensation and the percentage you get off your insurance will vary between insurers.
No claims discounts on home insurance work in exactly the same way as they do for car insurance. The longer you go without making a claim, the more you could potentially get off the cost of your insurance. So if you don’t have to claim for a burn on your carpet or a break in, your insurer may reduce the cost of your insurance every year – as long as your insurer offers the discount.
For home insurance no claims discounts, there’s usually no difference between fault and non-fault claims. A fault claim is one for something that you did yourself, like if you spilled something on the carpet while a non-fault claim is for something you didn’t cause.
Will it save you money?
Getting a home insurance policy with a no claims discount can save you money if you don’t make a claim, depending on your insurer. Your premiums could reduce for every year, although you can usually only build up a maximum of five years no claims discount. After five years, you could save around 50% off your premiums with the no claims discount or even more with some insurers.
You should be able to move your no claims discount from one insurer to another. If you’re looking to switch providers to get a better deal, your new insurer may ask for proof of your no claims history – you should be able to get this from your current insurer.
It’s also a good idea to check whether making a claim on your building insurance policy will affect your no claims discount on your contents insurance. Most insurers will keep the cost of these separate even if you’ve got building and contents with the same provider but you should check the details of your policy to be on the safe side.