Excess is the amount you agree to pay towards the cost of a claim before your insurer covers the rest. It’s a standard feature of most property insurance policies and applies to claims involving damage, loss, or theft.
There are usually two types of excess:
- Standard (compulsory) excess – Set by your insurer and automatically included in your policy.
- Voluntary excess – An optional amount you choose to add in exchange for a lower premium.
You’ll need to cover the total excess amount if you make a claim, either paid upfront to contractors or deducted from your final settlement.
Examples of excess in property claims
Homeowner: Escape of water
A burst pipe causes £5,000 worth of damage. Your escape of water excess is £500. The insurer pays £4,500, and the remaining £500 is your responsibility.
Landlord: Accidental fire damage
A tenant causes a kitchen fire. Your landlord policy has a £250 compulsory excess and a £500 voluntary excess, totalling £750. This amount is deducted from your final payout.
Business owner: Storm damage
High winds damage the shopfront. Repairs cost £3,000, and your storm damage excess is £1,000. Your insurer covers the remaining £2,000.
Why excess matters
It affects your claim payout
Excess is always deducted from your settlement. You’ll never receive the full cost of damage – the excess is the portion you agree to contribute.
It can vary depending on the claim type
Many policies apply different excesses to specific types of claims, such as:
- Escape of water
- Flood or storm damage
- Subsidence (often with higher excess levels)
Check your policy schedule to understand which excesses apply to each risk.
It can lower your premium
Choosing a higher voluntary excess may reduce your insurance premium. However, it increases the amount you’ll need to pay if you make a claim, so it’s important to be confident you could afford it.
FAQ’s
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Do I always have to pay the excess?
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Yes, unless your insurer waives it for specific circumstances. If another party is at fault and their insurer accepts liability, you may be reimbursed, but this can take time.
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Can I claim if the cost is lower than the excess?
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You can, but it may not be worth it. If the total damage is £400 and your excess is £500, you’ll receive no payout, and making a claim could still affect your record and future premiums.
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Does excess apply per item or per incident?
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Typically, excess applies per incident, not per item. So if multiple belongings are damaged in a single event (e.g. fire or flood), you only pay the excess once for that claim.
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Can I change my voluntary excess during the policy term?
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Some insurers may let you change your voluntary excess during the policy term, but it’s more commonly done at renewal. Keep in mind that increasing it mid-term may not reduce your premium straight away and it won’t affect your compulsory excess, which is set by the insurer.
