Home insurance excess explained

This is the fixed amount on your home insurance policy that you have to pay if you make a claim. Your insurer deducts this amount from the total claim value and then pays you the remainder. For example, a claim for £500 on a policy with a £100 excess would result in a payout of £400 to you.


Compulsory excess insurance meaning

There are two different types of excess that will apply to your home insurance policy – voluntary and compulsory. The compulsory is applied to every claim and is at a rate set by your insurer. This means that you will have to pay it on any and all claims you choose to make.

What is voluntary excess and what is compulsory


What is voluntary excess?

This is the additional contribution you are willing to make on top of any compulsory excess of the policy when it comes to the point of claim. The voluntary amount is chosen and set by you, from £0 up to £500 (and sometimes higher). The higher the figure you pick, the more you will have to pay in the event of a claim. However, many insurers will give a reduction in the cost of your annual premium if you have a higher excess. This is because the amount they will have to pay out in the event of a claim is reduced and those with a higher figure tend to only make claims when completely necessary.

Different excesses for different areas of cover

Depending what section of your policy you need to make a claim on, the amount you have to pay may vary. For example, if you have chosen optional extra covers such as Accidental Damage, this may carry a higher compulsory amount. The excess on subsidence claims is nearly always higher than the standard amount – a common figure is £1000. This is because subsidence damage is usually incredibly costly to repair.