What Is Excess?
insuranceThe out-of-pocket amount a policyholder must pay towards a claim before the insurer covers the remaining cost. Also known as the deductible in some markets.
Understanding Your Insurance Excess
When you make an insurance claim, the excess is the portion of the cost that you are responsible for paying. It is a fixed dollar amount set out in your policy, and it applies to each individual claim you lodge.
In Australia, home insurance excess amounts typically range from $200 to $1,000, though some policies offer the option to choose a higher voluntary excess in exchange for lower premiums. Understanding how your excess works is essential before a claim event occurs.
Types of Excess
- •Basic excess — the standard amount specified in your policy, applied to every claim.
- •Voluntary excess — an additional amount you choose to pay in exchange for a lower premium.
- •Imposed excess — an extra amount set by the insurer based on risk factors such as property age, location, or claim history.
- •Event-specific excess — a higher excess that applies to particular perils like flood, cyclone, or earthquake damage.
Your total excess for a single claim is the sum of all applicable excess types. For example, a $500 basic excess plus a $250 voluntary excess means you pay $750 before the insurer contributes. If an event-specific excess also applies, the total can be significantly higher.
Tip: Oxide Construct can collect your excess payment securely online as part of the claim process, making it one less thing to worry about during a stressful time.
How Oxide Handles This
At Oxide Construct, our technology-driven approach to insurance repair means excess is handled transparently. Track your claim in real-time through our platform, with a dedicated assessor as your single point of contact throughout the process.
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Further Reading
Written by the Oxide Construct team. Licensed builders (CDB-U 76013), HIA & MBA members.