In plain English
This is the part of a covered claim that the policyholder pays first. After that amount has been paid, the insurer pays the remaining amount.
In context
There, it labels the amount the policyholder would have to pay first toward a covered claim before the insurer pays the remainder.
- Situation
- Reading premium, deductible, excess, copay, limit, and out-of-pocket fields
- What it communicates
- labels the excess amount on an insurance quote
Meaning limits
By itself, the term does not say whether a particular claim will be covered or what the total claim amount will be.
Examples
“After the kitchen leak, Maya paid the £300 excess on her home insurance claim and the insurer covered the rest of the repair cost.”
“Any payment for the damaged fence will be reduced by the excess.”