In the case of subsidence affecting a block of three flats, what is the excess amount that needs to be paid?

In the context of household insurance, particularly concerning subsidence issues, the excess amount that policyholders are required to pay can vary based on the specific terms set within their insurance policy. An excess refers to the amount that the insured needs to contribute towards a claim before the insurer covers the remaining costs.

The chosen answer indicates that for a block of three flats affected by subsidence, the relevant excess amount specified is £1,500. This level of excess could be reflective of various factors such as the overall risk associated with subsidence claims, which may be higher for multi-unit dwellings compared to single-family homes, as well as any underwriting policies a particular insurer may have in place.

It’s also important to recognize that in many insurance policies, greater excess amounts tend to apply for certain types of risks, like subsidence, as insurers aim to mitigate their exposure to higher-frequency claims. Therefore, the £1,500 excess aligns with common practices in the insurance industry, recognizing that subsidence can lead to significant structural damage necessitating considerable repair costs.