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To compare the expected out-of-pocket costs under two home insurance offers, start with the same hypothetical claim and first check that the relevant cover is included in each proposal. Then apply the excess rule stated in each one to that same amount. The excess is the amount you must pay after the insurer has paid compensation. It may be expressed in euros or as a percentage.
The search for “home insurance excess out-of-pocket costs” therefore calls for a more precise reading than simply comparing amounts. A fixed excess and a proportional excess are not interpreted in the same way; a relative excess works differently again. Here is how to organise the comparison without confusing an illustrative calculation with a promise of compensation.
Start with a genuinely comparable scenario
Choose a common scenario: the same home, the same type of claim and the same amount of damage. Then note the cover you want to examine in each offer. The excess applies only in situations specified by the contract and may vary according to the type of claim or the cover concerned. Its amount varies according to the cover taken out.
To prepare the proposals, provide the same details about the home and the same estimate of the belongings to be covered. The insurer may ask for information about the home, the value of the belongings, your occupancy status and the optional cover you want. Provide accurate information: a false declaration or an omission may, among other things, result in reduced compensation.
Before you sign, the insurer must provide a proposal including an information sheet on prices and cover, as well as a copy of the draft contract or a detailed information notice. Place these documents side by side to identify, for the cover being examined, the calculation method, situations where the excess does not apply and any thresholds.
Compare calculation methods using the same amount
The following examples use the assumptions provided by Service Public. They help explain how the mechanisms work: they are neither quotes nor a personalised estimate. In a real comparison, replace these assumptions with the clauses in the offers you receive.
Absolute excess: an amount deducted
The absolute excess is always deducted from the compensation for each claim. In the Service Public example, with an excess of 150 € and a claim of 200 €, the compensation is 50 €. For a claim of 100 € with the same excess, there is no compensation.
To read an offer of this kind, note the amount specified for the chosen cover, then compare it with the amount in the selected scenario. The figure shown in a proposal is not enough on its own: you must also check which cover and which situations it relates to.
Relative excess: a threshold for insurer payment
The relative excess determines whether the insurer pays according to the amount of the claim. If the claim amount is below the excess, you will not receive any compensation at all. If the claim amount is above the excess, you will be compensated in full.
In the Service Public example, with a relative excess of 150 €, a claim of 100 € results in no compensation, while a claim of 200 € is compensated to the amount of 200 €. Compared with the absolute excess example above, the same excess amount therefore leads to a different interpretation for the same claim of 200 €. For an amount exactly equal to the threshold, check the clause in the offer: the examples provided concern amounts below or above it.
Proportional excess: also check the thresholds
The proportional excess is a percentage of the claim amount. The insurer may specify a minimum or maximum threshold. In the Service Public example, an excess of 10 % applied to a claim of 100 € results in compensation of 90 €.
If this excess of 10 % has a minimum threshold of 15 €, the same claim of 100 € results in an excess of 15 € and compensation of 85 €. When comparing offers, look for the percentage and any thresholds in each proposal before calculating.
Check the cover before deciding
A useful home insurance comparison does not stop at the calculation result. The documents provided before signing must give precise information about applicable coverage limits, such as the list of risks not covered. Check whether the chosen scenario corresponds to the cover offered and read these limits in each document.
Applying an excess is not compulsory. When the policy is taken out, the insurer decides whether or not to include an excess for each type of cover, and this decision must be clearly stated in the contract. Some situations may be covered without an excess. If a responsible third party is identified, the contract may provide that you will not have to pay an excess or that it will be reimbursed.
Do not therefore assume that the excess noted for water damage also applies to theft or fire: repeat the review for each type of cover that matters to your choice. Also note the premium for each proposal, without assuming that a price difference is enough to explain a difference in cover.
Consider natural disasters separately
In the event of a natural disaster, the excess is not set by the contract but by law. It is 380 €. If the damage results from ground movement following drought and/or soil rehydration, the excess is 1 520 €. This excess cannot be removed or reduced by the contract.
For this particular scenario, do not compare offers as if each one were free to set the excess. Keep it separate from the other scenarios examined and read the contract documents for the rest of the comparison.
A simple checklist before choosing
- Specify the same home, the same belongings and the same cover in your request to each professional.
- Choose a common claim amount and note the type of excess and its calculation rule for each offer.
- Check the situations where it does not apply, as well as any minimum or maximum thresholds.
- Compare the result with the coverage limits and the premium, then ask for clarification if a clause remains ambiguous.
You can approach several professionals at the same time to compare their proposals. These calculations are a reading aid, not a policy purchase or personalised advice: before committing, compare your scenario with the documents for each offer and the conditions applicable to your situation.