Buildings Insurance and Excesses

Most insurance policies have an excess. This is the amount that you pay in the event of a claim. You might wish to reduce your premium by paying an additional amount. This is called a voluntary excess and will be additional to any compulsory excess that is required by the insurers.

If you live in an area where there is a higher risk of flood or subsidence, your insurer might impose a higher excess for these perils. Your policy might be more expensive as a result, but the extra cost is probably worth the peace of mind. In some cases insurers will not be prepared to cover properties in flood areas or those with previous history of subsidence.

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