In the mortgage industry, ‘excess’ refers to the amount of money homeowners need to pay before their contents or building insurance plan can cover any claims they may make in the future.
An example of this could be when a property is damaged by flooding. The owner may be liable to pay an excess fee towards a claim before it can be processed.
This can be highly variable depending on the insurer; therefore owners are strongly advised to compare the market before purchasing an insurance plan. It should be noted that a higher excess will often reflect a more expensive insurance policy.