An excess is the amount a policyholder is required to pay towards the cost of any claim. You may be asked to pay this amount to a company that has carried out repairs on behalf of your insurer, or alternatively the sum will be deducted from any settlement received. The excess payable will be the combined total of the Compulsory and Voluntary Excesses applying on the policy.
Compulsory Excess
A compulsory excess is the excess applied by the insurer, it cannot be reduced or removed from the policy. In addition to the standard compulsory excess, additional compulsory excesses may apply in certain circumstances, ie. if there is a history of flooding or for subsidence claims. In the event of a claim all excesses applying to the section of cover under which the claim is being made are added to any voluntary excess selected by the client.
Voluntary Excess
A voluntary excess is an additional amount the policyholder chooses to pay in the event of a claim in order to achieve a reduction in their premium. In the event of a claim the voluntary excess will be added to any compulsory excesses applying.
