An ‘excess’ on your buildings and / or contents insurance means that you’ll pay a minimum amount every time you make a claim on the insurance policy. For example, if you choose a £50 excess and make a claim for £400, you’ll receive a maximum of £350 from your insurer.
It’s worth knowing that many policies automatically include a compulsory excess which applies in addition to any voluntary excess that you choose.
It can be tempting to choose a high voluntary excess as this usually lowers your premium. But think carefully, if you find yourself needing to claim - would you be able to afford the excess?
It’s also worth considering whether you’d be best opting for a monthly direct debit, or paying annually. Monthly payments might be more convenient, but you could avoid any interest charges if you choose to pay annually.