The majority of people are not aware of their current home insurance excesses, data from Go.Compare home insurance has revealed.
The research revealed that just 40% were aware of their voluntary excess, and only 36% knew their compulsory excess.
Additionally, just over a fifth of people (21%) admitted to being unaware of both their voluntary and compulsory excess.
Only half (52%) of those surveyed said they fully understood what the terms ‘voluntary excess’ and ‘compulsory excess’ meant in relation to their insurance policies.
In addition, the research revealed that phrases ‘sum insured’ (45%), ‘additional excess’ (41%) and ‘underinsured’ (32%) were policy holders’ three least-understood terms.
Ceri McMillan, home insurance spokesperson at Go.Compare, said: “Understanding your home insurance policy is extremely important, and the excesses outlined in your policy can have a big impact in the event you have to make a claim, so it’s worth paying close attention to these before making a commitment.
“An excess is essentially the amount you will have to pay towards any claim you make – so the higher your excesses, the higher the potential bill you may face when you are claiming.
“While choosing higher excesses may lower the cost of your home insurance policy, it is vital you make sure they will be affordable for you in the event of a claim.”
McMillan added: “Depending on your policy, home insurance can cover your home and its contents from a variety of damage, due to things like fires, flooding, storms, and theft.
“In the event of a claim, it may cover the costs of any repairs or replacements needed, but your specific cover will depend on your individual policy – so it is important to check the fine print and be aware of how far your cover extends, as well as how much it might cost you to make a claim.
“Go.Compare is currently offering £250 free excess cover when you buy home insurance, so remember to factor this into your excesses when you get your new policy.”
