Home Insurance - NCB invalidation

gauresh

i had 5 years of NCB regarding my home insurance.. however i hadnt noticed that it had lapsed until i noticed that my DD hadnt been taken with my previous supplier. I found a new policy as soon as i did but my new provider has said because of the GAP in insurance (literally less than 30 days) i cant use my previous NCB and so my premium will be going up. is this something that is normal? or even legal?

Mark_d

It's odd that your new insurer won't offer you a NCD.  They certainly don't have to, but I think a lot of insurers would be understanding.

DullGreyGuy

gauresh said:

i had 5 years of NCB regarding my home insurance.. however i hadnt noticed that it had lapsed until i noticed that my DD hadnt been taken with my previous supplier. I found a new policy as soon as i did but my new provider has said because of the GAP in insurance (literally less than 30 days) i cant use my previous NCB and so my premium will be going up. is this something that is normal? or even legal?

There are no "laws" about NCD. How NCD operates varies significantly between different classes of insurance... in Motor its well established and fairly consistent between companies but you still get notable differences (eg DL now state they won't reduce your NCD if you weren't to blame for the loss whereas 99% of insurers would dock your NCD if the car is vandlised) and it works as a discount you get on next years premiums. With Small Craft Marine NCD is normally a reimbursement of premiums from last years premiums instead if you haven't made a claim and renew with the same company. 

Home insurance NCD is a much newer concept, many insurers dont use it at all and stick to the traditional pair of questions of how many continuous years of insurance and how many claims in the last 5 years. Each insurer is free to have their own rules, and as an immature concept there's even more deviation than there is in Motor, as long as they are clear and easy enough for the insured to understand. 

Who did you buy from? Going back through their process does it state there must be continuous use of the NCD?