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What Is Voluntary Excess Home Insurance

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How Do I Find Out What Excess I Will Need To Pay Towards A Claim


There is a minimum standard excess of £100.To help reduce your premium by up to 30%, you can opt at the time of purchase to pay a voluntary excess in the event of a claim. You can choose to set the voluntary excess somewhere between £50 and £900.There are also separate excesses for flooding, subsidence/landslip/heave, escape of oil and escape of water claims.

Please check your Policy schedule to find out what excesses you chose at the time of purchasing your policy.

What Is The Voluntary Excess

On top of the mandatory excess you can choose a voluntary excess. The amounts you can choose from are 100, 200, 300, 400 or 500. Just like the mandatory excess, you will have to pay voluntary excess first before the basic insurance reimburses medical costs. The voluntary excess also applies to a full calendar year .

Car Insurance Excess Explained

In a nutshell, your excess is a fixed amount that you have to fork out if you make a claim.

So, if your excess is £250 and you make a claim for £1,000, your car insurance provider might keep the first £250 and only pay you the remaining £750.

If you make a claim that was deemed to be someone elses fault, your insurer might decide to pay your claim in full and waive your excess.

This isn’t set in stone though, so check the T& Cs of your policy to find out if your insurer does this.

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How Do I Make A Claim

If you are making a buildings insurance or contents insurance claim please call your insurer, this will either be AXA Insurance, Ageas or Legal & General. Please check your Policy schedule to find out which insurer underwrites your policy. The phone number is shown on the Policy Schedule.

If you are making a claim on an additional cover option such as Legal expenses or Home Emergency cover please check your Policy Schedule to find the correct phone number.

The Claims team will request your policy number and details of the loss or damage including: date and time, your description of what happened, what the extent of the loss or damage is, what exactly is lost or damaged, the estimated value of the items lost or damaged and whether the police have been informed .

Whats The Difference Between Compulsory And Voluntary Excess

Voluntary &  Compulsory Excess In Motor Insurance

There are different types of excess a compulsory excess and a voluntary excess.

The compulsory excess, as the name suggests, is applied to every policy claim and it gets decided by your insurer. The price of this will vary but can be as low as £50.

The voluntary excess on the other hand can be chosen by you. You can pay as little as zero, and this will be on top of the compulsory excess.

Paying a higher voluntary excess could mean you pay a lower premium on your home insurance.

This is because insurers wont have to pay as much in the event of a claim.

But it does mean that if you do claim, youll pay both your compulsory and voluntary excess.

For example, if you claimed for accidental damage, your compulsory excess could be £200 and the voluntary excess £200.

In which case, you could be paying £400 if you claimed.

If the claim was for £1,000, your insurer should pay £600.

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What Does Excess Mean In Insurance

6th April 2020| Insurance

Whether you have a home, car or travel insurance policy, its likely that youve seen the term excess used in your documentation. But what exactly is it and do you need to pay it?

Below, you can find all the information you need to know about how excess works and the difference between voluntary and compulsory excess.

What Excess Insurance Does Hsbc Offer

Some insurers offer excess insurance on its own. We offer it as part of our multi-insurance policy, Select and Cover, where you can choose 3 or more types of cover from £19.50 a month.

The excess protection option allows you to claim the excess back from other insurance policies, in the event a claim has been made. It includes motor, home, pet and travel insurance claims, as well as claims on the Select and Cover options that feature an excess.

Select and Cover is available to HSBC UK customers who are registered for online banking. HSBC Excess Protection Insurance is provided by Aviva Insurance Limited.

Before you buy any insurance product, its important to read the policy and understand the details including costs to make sure you get the cover you need.

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What Is The Mandatory Excess

When you receive medical care you will pay part of the costs yourself. This is called the mandatory excess. The government determines the level of the excess each year. This year the excess amounts to 385.

  • The mandatory excess applies to everyone from the age of 18
  • You will pay the excess as well as your insurance premium
  • Applies to a full calendar year
  • You use up the full excess amount before receiving a reimbursement from the basic insurance
  • Never applies to medical care reimbursed from a supplementary insurance

Student Contents Away From The Home Cover

Wise Owl Series (Eps 6) – Types of Motor Insurance Excess

Student Contents Away From The Home Cover

Excess payable for Home Insurance

Excess payable for Home Insurance Ultimate

Student Contents Away From The Home Cover

Student Contents Away From The Home Cover

Excess payable for Home Insurance

Your selected contents excess, except for the following items in this table

Excess payable for Home Insurance Ultimate

Your selected contents excess, except for the following items in this table

Student Contents Away From The Home Cover

Replacement locks and keys

Excess payable for Home Insurance

Excess payable for Home Insurance Ultimate

No excess to pay

Student Contents Away From The Home Cover

Money, cashcards, credit and debit cards

Excess payable for Home Insurance

Excess payable for Home Insurance Ultimate

Excess payable for Home Insurance

Excess payable for Home Insurance Ultimate

Pedal Cycle Cover

Excess payable for Home Insurance

Your selected contents excess

Excess payable for Home Insurance Ultimate

Your selected contents excess

Excess payable for Home Insurance

Excess payable for Home Insurance Ultimate

Specified Items Cover

Excess payable for Home Insurance

Your selected contents excess

Excess payable for Home Insurance Ultimate

Your selected contents excess

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Home Insurance Excess Explained

For home cover, the excess can vary for each insured event. This means you may have different levels for a fire, leaking water or subsidence.

Our standard amount is £200 but you can choose different excesses for both buildings and contents insurance, the minimum being £100. You can select these in MyAviva in the “Tailor your policy” section on the “Your quote” page.

As an example, if the damage to your property is £1,500 and your policy excess is £200, we’ll expect you to pay the first £200 of the claim and we’d pay the remaining £1,300.

For a subsidence claim, the standard excess is £1,000 but this figure can change depending on the history of your property or area.

For Aviva Home Insurance policies, if you make an escape of water claim the standard excess is £450.

Is It Better To Have A Higher Voluntary Excess

If you select a higher voluntary excess, then you are likely to get lower quotes for your premium, and youll have the best experience if you dont need to claim your insurance. Overall you will have saved money.

If you opt for a higher excess and then have to make a claim, youll have to pay a compulsory excess plus this voluntary amount, which could more than wipe out the saving you received on your premium.

As we cant predict the future, you need to know that any home insurance excess you sign up to, is affordable. Ideally youll have the money sitting in an instant access savings account if you need to make a claim.

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How Will My Claim Be Settled

Depending on the type of loss or damage the claim will either result in you receiving the money to cover replacing or repairing the lost or damaged items, or the money to cover the cost of repairing the damage. Or in some cases, the insurer may pay the suppliers directly.

In some cases, especially if the claim is of a large value, the Claims team may send an assessor to your property to assess the best approach to settle the claim. If this is likely, the Claims handler will let you know when you log the claim with them.

How Much Voluntary Excess Should I Pay Towards A Claim

Motor Insurance excess  Compulsory and Voluntary excess ...

How much you decide to contribute towards your insurance excess should depend on the amount of money you have in savings. Its impossible to know if you will need to claim on your insurance in the future, so make sure that any amount that you agree to contribute to future claims is affordable to you. Ideally youll have this money in a savings account or an emergency fund.

Relying on a credit facility such as a credit card, to fund any future insurance claim, could put you into debt. Although a lower premium can be attractive, youre better off picking one that is affordable.

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What Should My Excess Be On A Typical Claim

Home insurance comes in two options buildings and contents and depending on the cover you choose it can protect you from all sorts of issues like loss, damage and theft.

You need to be aware that some cover issues come with a higher compulsory excess. For both buildings and contents policies, a claim for ‘escape of water’ has a high excess. While for buildings insurance, subsidence, heave and landslip have a very high excess. In these cases the excesses reflect the expensive cost of repairs.

Damage caused by a flood is different to a burst pipe or other type of water leak claim and is usually included in your standard cover excesses. But if you live in a flood risk zone, your insurance quotes could be higher anyway.

You can find the compulsory excess values for contents or buildings claims in your policy documents.

Can You Change The Amount Of Excess You Pay

When itâs time for you to renew your car insurance policy, this is a good opportunity for you to look at your voluntary excess amount. By altering the amount of excess you voluntarily pay, you can see what effect it has on your quote. Make sure the amount set is an amount you are able to pay for the duration of your new car insurance policy if you need to make a claim.

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What Is Compulsory Excess

Compulsory excess is the set fee, decided by your insurer, which is applied to your policy automatically – you have no power over the amount you pay.

However, while you cannot change the amount of compulsory excess you personally are charged, the fee does vary depending on your personal circumstances and the features youve opted for in your home insurance policy.

What Is Insurance Excess

Compulsory excess or voluntary excess? U.K.

The excess is the amount an insurance policy holder has to pay towards the cost of any claim before the insurer covers the rest.

Policies nearly always have a built-in, standard level of excess, which is generally set quite low £50 is a common sum in many home cover deals.

However, you usually have the option of choosing to increase the amount you pay towards a claim in return for lower premiums. The maximum voluntary excess you can set varies by insurer, but can be as much as £1,000 or more.

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Top Tips For Choosing Your Home Insurance Excess

Choosing how much voluntary excess you want to pay on any potential insurance claim is a crucial part of taking out cover, and can be tricky to get right.

The level of excess has a direct impact on your premiums, and you need to ask yourself a series of questions when deciding on an acceptable level.

Compare Car Insurance Excess To Get The Best Deals On Car Cover

Excess can play a big part in the overall cost of your car insurance so its well worth playing around with different amounts to see what the effect on your premium will be. Just always remember that the value should be affordable because in many cases youll need to pay it before any kind of claim can go ahead.

To start your search and compare how excess can change the cost of your car cover, simply fill in our online quote form.

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Can I Get Insurance Without A Voluntary Excess

Yes! Compulsory excess is the cost that you cant change, while voluntary is an optional add-on. Whats important to note, however, is that voluntary refers to the choice you make at the point of signing up for your insurance policy. Once youve agreed to this amount, its non-negotiable. Youll have to pay it at any point that you make a claim.

Bear in mind that voluntary excess is an additional cost, not an alternative one. Make sure you can afford the total sum, as youll always be required to pay it. Its not a matter of choosing one or the other.

Its easy to see the appeal of paying £0 voluntary excess. When getting a quote, play around with adjusting the voluntary excess on your policy and see how it affects the price.

What Is The Difference Between Voluntary And Compulsory Excess

Voluntary Excess Home Insurance Meaning
Compulsory excess

This is the fixed amount pre-set by your insurer to be paid if you make a claim on your car insurance. The excess level tends to be higher for new drivers with less driving experience, or those who drive high-performance cars – depending on the car’sinsurance group.

Voluntary excess

Voluntary excess gives you control over the cost of your car insurance. You decide how much to pay. Added to your compulsory excess, you will need to pay both in the event of an accident so make sure you can afford to pay this amount in the event of an accident. You may either choose a lower voluntary excess for a higher premium, or a higher voluntary excess for a lower premium.

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How Much Voluntary Excess Should I Pay On Home Insurance

Last Updated on November 1, 2020 by

Your home insurance voluntary excess is the amount that you will pay out of your pocket, before receiving claims money from your insurer. You pay a voluntary excess on top of any compulsory excess set by your insurance company. The level of voluntary excess that you select for your policy should depend upon your level of savings the worst thing you can do is try to get a cheaper policy by choosing a voluntary excess that is not affordable.

So how do you decide how much voluntary excess to pay on your home insurance?

Disclaimer: Please note, this article may contain affiliate links. If you decide to use them, my blog may earn a small commission at no additional cost to you, which helps to fund more helpful articles for you to enjoy. Find out more in my Affiliate Disclosure. Nothing in this article constitutes financial, or other, advice. These are my views and the results of years of research, testing and learning.

How Should I Choose The Level Of My Voluntary Excess

The voluntary excess amount that you commit to will mostly be determined by the disposable income you have access to if the need for a claim arises.

It should be set at an amount that you can comfortably manage to pay whilst taking the inclusiveness of compulsory excess into consideration.

Many younger drivers prefer to avoid voluntary excess because their disposable income and savings are limited. In this case, its safer and easier to factor in higher insurance premiums.

Mature drivers, on the other hand, are more likely to have the financial stability to take advantage of voluntary excess and the lower premiums that come with it.

Essentially, the level of voluntary excess you choose is narrowed down due to three factors:

  • Your personal preference

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How Much Excess Should I Pay On My Car Insurance

  • Younger drivers with car insurance – drivers under 25 often have to pay an additional compulsory excess on top of the standard excess if they need to make a claim.

  • ‘Young driver’ excess is applied by some insurers as younger drivers are perceived to be higher risk and more likely to make a claim, with claims often more expensive.

  • Insurers cover themselves by asking them to pay more towards the cost of a claim.

  • For example, a compulsory excess of £150 may be added on top of a standard excess of £200.

  • Adding a voluntary excess of £100 may decrease your premiums, but could be counterproductive as you will be faced with paying out £450 if you make a claim.

When Do I Need To Pay My Voluntary Excess

Insurance Excess, Franchise and Deductibles

With most insurers, you will only need to pay your excess in the event of a claim where youre at fault. For example, if you caused an accident, then youll have to pay your excess before your insurer will cover the remaining cost of the damage.

If another driver admitted that they were at fault, making a claim wont be necessary, so you wont need to pay any excess at all. Their insurer will cover the full amount. Whats more complicated, however, is a situation where its not clear whos at fault. If you need to make repairs before this has been established, youll have to claim on your insurance. This will involve you paying your excess.

However, youll then get refunded if the dispute is settled in your favour. Or, if someone else is making a claim against you, your insurer will cover it but you wont have to pay excess.

Insurers will usually ask you to pay your excess upfront to start the claims process. But this isnt always the case. Sometimes it will be deducted from your total repair bill at the end of the claims process. This way, you wont need to send them a large sum of money youll just receive less towards the repairs. In either scenario, you wont be able to pay the amount in instalments so make sure you have the equivalent of your chosen excess put to one side in case you need it. Its a financial burden you should be comfortable with bearing in the unfortunate event that you are involved in an accident.

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