What is excess policy

Excess policies, also called secondary policies, extend the limit of insurance coverage of the primary policy or the underlying liability policy. In other words, the underlying policy is responsible for paying any portion of a claim first before the excess policy is used.

What is excess insurance example?

How does it work? If your home is damaged in a storm, the cost of repairing the damage might be $4000. If you had a $600 excess, you'd pay the first $600 and the insurer would pay the remainder. Not every type of policy has the same kind and level of excess, and excesses don't all apply in the same situations.

What does excess amount mean?

adjective [ADJECTIVE noun] Excess is used to describe amounts that are greater than what is needed, allowed, or usual.

What happens when you pay excess?

You pay the excess in the event of any claim made on your insurance policy regardless of who's to blame. However, if it's proved the accident was the other person's fault and the full cost is recovered from their insurer, you may be able to recover this amount.