Excess is the amount you pay towards any claim made by you on the home insurance policy. In case of a £1200 claim, if you have £200 excess then you receive only £1000 from your provider.
There are two types of excess:
Compulsory excess: This amount is decided by the provider. You have to pay this much in the beginning of the policy and the amount cannot be modified.
Voluntary excess: In this case, the amount of the excess is entirely your choice. If you have extra funds, then you can pay voluntary excess. Your insurer will charge lower premiums if you pay a larger excess.