Normally excess options will be offered, when you obtain and insurance quotation for your block. An excess is the first part of a claim which is paid by the Policyholder.
For example, your quote could be offered with a £100 excess. If you prefer a NIL excess the premium would normally increase or could be reduced by requesting a higher excess.
The Insurer pays amounts in “excess” of this first amount. An excess may be compulsory (i.e. imposed by the Insurer) or voluntary if accepted by the Policyholder in return for a premium reduction.
You should choose your excess dependent on how your Company is set up and what you can afford. For example some Residents’ Management Companies are set up to pay the policy excess and others arrange for the person that causes the damage to pay the policy excess.