An insurance excess is the amount you agree to contribute towards an approved claim, and your policy may include standard and additional excesses for events such as storms or floods. A higher excess can sometimes reduce the premium, while a lower excess may cost more, but the effect depends on the insurer and your circumstances. Choose an amount you could comfortably pay after an unexpected loss, and check whether your lender has any requirements. Compare policy documents and confirm the excesses, exclusions and cover limits with the insurer before buying.