Normally, if you make a claim on your Buildings or Contents insurance, your home insurance provider will charge you an excess. This is the first part of each claim that you will have to pay and will include the compulsory excess set out by your insurer and any voluntary excesses that you have opted to pay on top of that.

Compulsory Excesses

The compulsory excess is the first amount of money that you will have to pay towards each and every claim. This could vary between insurers depending on your personal circumstances and the terms and conditions set out in your policy. A typical standard excess is usually between £25 and £100, but you will need to check with your insurer. Some types of claim like claims for Accidental damage may have a higher excess, so it is important to check the excesses carefully to make sure you are getting a good deal. It is also worth noting that claims for subsidence normally have a much higher excess. This is usually £1,000, but could be more. The excess for subsidence claims are usually higher because of the high costs incurred by the insurer to return the property to a safe and good state of repair.

Voluntary Excesses

The voluntary excess is the amount of money you have opted to pay, on top of the compulsory excess if you were to make a claim. You can opt for a voluntary excess for both your buildings and contents or you could have a voluntary excess for one and not the other. For example, when setting up your home insurance policy you may have chosen to pay a voluntary excess in order to qualify for a discount on your premium. So if your standard insurance policy excess is £50 and you opted to have a voluntary excess of £150, under your buildings insurance, you would end up paying the first £200 of each claim under that policy. You should always try and be realistic when opting in for a voluntary excess and make sure that you would be able to afford the additional premium in the event of a claim. Bear in mind that if you opt for a voluntary excess on both buildings and contents and had to make a claim under both of these covers you would be paying this premium twice.

By having a voluntary excess on your home insurance your company may offer you substantial discounts off your home insurance premium. Insure4Retirement may offer discounts off your annual premium too when opting for a voluntary excess.

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