Households are being urged to dig deeper than the headline prices when buying home insurance, as analysis indicates that some could face contributing hundreds of pounds if they need to make a claim.
Financial information business Defaqto’s analysis of home insurance products found that some excess levels have been increasing in recent years.
The excess is the amount that the customer pays towards the claim.
A high excess could outweigh the cost of some lower-value claims.
Defaqto said that in April 2025 the proportion of buildings insurance policies with a standard excess of £251 to £400 had increased to 13%, from just 2% in 2019.
The most common excess band of £51 to £100 has fallen in popularity, covering 45% of deals on the market, down from 60% in 2019.
Defaqto said it had also found several products implementing a standard excess of more than £400.
It also found that the proportion of policies that allow the standard excess to be reduced to £50 or less, in return for paying an increased premium, has fallen from 25% in 2019 to just 11%.
Many buildings insurance policies also specify an excess of more than £400 for escape of water claims, researchers said.
Contents insurance products are following a similar pattern, Defaqto found.
The proportion of policies on the market with a standard excess of £25 to £400 has risen to 11%, up from 1% in 2019, while the proportion of those offering a £51 to £100 excess has fallen from 59% to 46%.
Angela Pilley, a home insurance expert at Defaqto, said: “While many people focus on the premium when choosing insurance, it’s just as important to consider the excess.
“In the event of a claim, this is the amount you’ll need to pay towards the cost, and in some cases high excesses can make it uneconomical to claim at all.
“If your excess is £400 and your claim is only £500, it may not be worth pursuing.
“Checking the fine print is essential to make sure your policy offers real value.”
Here are some tips from Defaqto for choosing home insurance:
1. Check the excess on both buildings and contents insurance – do not assume they are low.
2. Look out for specific claim excesses, such as for water damage or accidental damage.
3. Compare policies carefully and consider whether a slightly higher premium with a lower excess may offer better value.
4. Consider whether you could afford to pay a high excess if the unexpected happened.
