No Claims Discount (NCD)

A No Claims Discount (or NCD) entitles you to a reduction in your premium if you did not claim on your home insurance the previous year. Some insurers offer discounts of up to thirty percent.

If you make a claim against your home insurance, whether this is part of the buildings or contents cover, you may no longer be eligible for NCD, depending on your policy and insurer. In some cases you may earn separate NCD for buildings and contents insurance, which means that you are able to make a claim on your contents insurance and still retain your buildings insurance NCD. You should ask your insurance provider if you are concerned about how a claim will affect your NCD entitlement.


Protected No Claims Discount
Typically, if you have not made a home insurance claim for five years or more, you are able to protect your NCD in exchange for a slight increase in the cost of your premium. This means that you are able to make one or two claims without losing your NCD entitlement. Whether you protect your NCD is up to you. If protecting it means a large increase in your premium and your sum insured is relatively small, you may consider it an unnecessary expense.