Excess
An insurance excess is the amount of money you choose when purchasing a policy that will be subtracted from any future claims payouts.
An insurance excess is the amount of money you choose when purchasing a policy that will be subtracted from any future claims payouts.
What is an insurance excess?
An insurance excess is the amount of money that will be subtracted from any future claims payouts; it’s your contribution to the covered claim. You can choose your excess amount, which ranges from £100 to £500 for Lemonade Contents insurance.
Let’s say your £1000 laptop was stolen and your excess was £250. If your claim is approved, your insurance company would pay you £700 when you get reimbursed.
Think of an excess as your participation in the damage or loss. You’re saying, “I commit £X to any approved claim for future losses or damages, and my insurance company will cover the rest.”
When signing up for a contents insurance policy, you’ll be asked to choose an excess. At Lemonade, this ranges from £100 to £500 ( £100, £150, £250, £400, £500). The excess is how much money would be deducted on every covered claim.
