Home insurance excesses
What is a home insurance excess?
A home insurance excess is the amount you pay towards each claim you make on your home and/or contents insurance policy.
For example, if your home insurance excess was $500 and your damage bill was $10,000, you’d pay $500 and we’d pay $9,500. If the damage was $500 or less, you’d pay the entire bill.
In some circumstances, additional excesses may also apply.
What’s the purpose of the excess?
The excess is designed mainly to eliminate small claims that have a high administrative cost relative to the value of the claim. This in turn helps to keep your premiums down.
If I make a home and/or contents claim, what will my excess be?
If you make a claim on your Budget Direct home and/or contents insurance, you’ll be required to pay a Basic Excess and any additional excesses that apply (see table below).
| Excess | Amount |
|---|---|
| Basic | $100 to $5,000^ |
| Fixed Based on perceived risk; may not apply to your policy |
Subject to underwriting criteria |
| Tenant default# | 4 weeks rent |
| Theft and malicious damage by tenants# | 4 weeks rent |
| Earthquake or tsunami | $500 |
| Personal effects excess | $100 |
| Unoccupancy excess | $1,000 |
^. You’ll be asked to nominate an excess within this range when you get a quote and buy a policy.
#. This excess applies only if your policy includes these optional landlord covers.
Your certificate of insurance shows you the amount and types of excess that apply to your cover; they can also be viewed in your online account.
If I make a claim for loss or damage to my home and contents, will I have to pay two excesses?
No, you will not pay two basic excesses.
If your claim involves both your home and contents from a single incident, you will pay only the higher of the basic excesses shown on your insurance certificate.
You may also need to pay any applicable additional excesses, for example, an Unoccupancy excess if your home was unoccupied.
When do I pay excess on home insurance?
You'll pay an excess for each incident that results in loss or damage to your home and contents. This may include additional excesses depending on the claim circumstances.
Can I change my home insurance excess?
Yes, you can change your Basic Excess at any time.
You can choose a Basic Excess between $100 and $5,000. Increasing your Basic Excess could lower your premium. Always choose an excess you will be comfortable to pay at claim time.
To change your Basic Excess, you can:
- Contact us
- Log into your online account and edit your policy
Can I pay my home or contents insurance excess in instalments?
Normally, a home or contents insurance excess is paid as a lump sum, not in instalments. If you can’t pay it as a lump sum due to financial hardship, you can ask us whether you might be entitled to assistance. If you are, we may give you longer to pay the excess or allow you to pay it in instalments, for example.
