Compulsory and voluntary
UK policies usually have a compulsory excess set by the insurer and an optional voluntary excess you choose. They add together. Certain perils often carry their own higher excess: subsidence on buildings cover, escape of water on some home policies, or young drivers on car insurance.
How deductibles work in the US
US policies use a deductible per claim (home and auto). Some perils use percentage deductibles based on the dwelling limit, such as hurricane or windstorm deductibles in coastal states. See hurricane deductibles.
Choosing an excess
- Pick a total you could pay tomorrow without hardship.
- Compare quotes at the same total excess.
- Remember that small claims below or near the excess aren’t worth making and can affect future premiums.
Business policies
Business policies may have excesses per claim, per section, or aggregate deductibles for the year. Liability policies sometimes apply an excess only to property damage claims. Check the schedule for each section.
Last updated: 4 October 2026
