Is No Claims Protection on Home Insurance worth it?

dizzie

Hi,

Would be grateful for your input on this. I have done a quote with M&S home insurance but can't decide whether it is worth the extra to protect my four years no claims.

I usually use Martin's tips every year when it comes to renewal, to get a good deal. Quite frequently, I find that the first year rate is good but then the premium goes up by quite a large amount at renewal. So most years, I end up changing the insurer.

Hypothetically, if I had a claim and was protected with NCP with one company, if I then moved to another insurer, am I right in thinking that the premiums would be dictated by the fact that I had a claim (i.e. they wouldn't be interested that I had held NCP with my previous insurer).

...I guess what I am trying to work out is, is it worth it for home insurance?:(

lisyloo

Right.
If you don't have protection then your premium will go up because of the claim AND your discount (NCD) will go down. A double whammy.

If you do have protection then your premium will still go up and you will still have to declare the claim but your discount will be intact. So you still get hit but less.

The real way to tell is to run some quotes.
Pretend you've had a claim.
Do a quote with the claim AND NCD reduced.
Then do a quote with the claim but NCD protected.

Bear in mind the effect can last many years.

I'm afraid you need to run the quotes for your individual circumstances and no-one can give you a general answer.

Personally I always take it, but that doesn't mean it's worthwhile for everyone.

dizzie

Mmm....I'm still confused

When I do an online quote for car insurance, the sites ask me how many years no claims I have and then ask me to detail any accidents incurred whether there was a claim or not.

When I do new quotes for house insurance, the sites don't ask me how many years no claims I have, they just want to know whether you made a claim in the past x years...which if you have, then you have...and I can't see how NCP protects you if you change insurer.

Am I missing something or am I being totally thick here?:o

lisyloo

I guess it depends on which insurer you are planning to go to and which site you are using.
If the insurer you are planning to use in future do not take account of any no claims discount then there is absolutely no point paying to protect it.

This now takes you into the realm of speculation because if some do recognise it and others don't then you may not know which company you are going to use next year, but if NCD is not univerally recognised then protecting it has to have a lot less value.

NCD on car insurance is pretty universal across the industry, but if you are finding the home insurance companies you are using don't use it, then I can't see the point in paying to protect it.
The company offering it to you are probably intending you to use it when you stay with them.