What is a home insurance excess?

An excess is the amount you pay towards each claim you make on your home and/or contents insurance policy.

For example, if your home excess was $700 and your damage bill was $10,000, you’d pay $700 and we’d pay $9300. If the damage was $700 or less, you’d pay the entire bill.

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 $5,0001
Based on perceived risk; may not apply to your policy
Subject to underwriting criteria
Tenant Default2 4 weeks' rent
Theft and Malicious Damage by Tenants2 4 weeks' rent
Earthquake $500
  1. You’ll be asked to nominate an excess within this range when you get a quote and buy a policy.
  2. 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’ll be required to pay only the higher of the two Basic excesses you have selected.

When do I pay excess on home insurance?

We’ll ask you to pay the excess before we repair and/or replace your home and/or contents.

Can I change my home insurance excess?

Yes – Budget Direct home and/or contents insurance policyholders can change their Basic Excess at any time; it can be any amount from $100 to $5,000.

If you increase your excess, it can lower your premium (and vice-versa).

To change your excess, contact us or log into your online account and edit your policy.

Get a home contents insurance quote online