Excess Waivers and high value home insurance

What is an Excess Waiver?

An Excess Waiver on an insurance policy is the point at which an insurer will waive the excess on your claim.

This is typically applied to larger claims, and most commonly found on mid net worth and high net worth policies.

Excess Waivers are added as the value of the excess may be a drop in the ocean versus the size of the claim.

And whilst excesses are often added to deter small claims, a very large claim is likely to be made regardless of the excess amount. In the example above, with a £15,000 Excess Waiver, the policyholder would receive the full value of the £20,000 claim.

What can I expect if my policy has an Excess Waiver?

If your policy includes an Excess Waiver, and your claim reaches the threshold specified in the policy wording, your insurer will automatically waive the excess; meaning no excess will apply and the claim will be settled in full with the relevant parties.

Many of our products at Howden, especially our high-net-worth products, have an Excess Waiver with thresholds from as low as £15,000. This can help make larger claims smoother sailing and means that an excess something you don’t need to think about whilst dealing with the potential stress of a larger claim.

Do all policies have an Excess Waiver?

No and an Excess Waiver is something to consider if you are shopping around on comparison sites for a cheaper policy. Many online policies, even those labelled as “premium” do not include an Excess Waiver in their wordings which means that you will need to pay an excess on all claims, unless your policy wording says otherwise.

Is an Excess Waiver applied to all claims?

Even if your insurance policy includes an Excess Waiver, it may not be applied if:

1. You have requested a high voluntary excess to reduce your premium.
2. The insurer has applied a compulsory excess. This would effectively override the Excess Waiver

It’s also important to check your policy wording to understand the threshold at which the waiver kicks in, as claims below this amount will require an excess.

How can Howden help?

At Howden, our people are not only experienced, but they’re also professionally qualified insurance advisers who understand the fine detail. We’ll take the time to review your policy in detail, ensuring features like Excess Waivers are clearly understood and applied correctly. And if the worst happens and you do need to make a claim, our specialist claims team can guide you through the process.

To speak to us about your home insurance call 020 8256 4901 or email privateclients@howdeninsurance.co.uk