What does $250 excess mean?

What $250 excess means in insurance is amount you pay first before insurer pays remainder of claim, so for $250 excess, you contribute $250 to each claim. For example, if you have home contents theft claim $5,000 with $250 excess, insurer deducts $250 from payment, you receive $4,750, and you pay $250 to repairer or for replacement, or insurer pays repairer $4,750 and you pay $250 to repairer. If claim $400 with $250 excess, you receive $150, as $400 minus $250 = $150, if claim less than excess $200 with $250 excess, you receive $0 as excess higher than claim, so not worth claiming. $250 excess is low excess, meaning you pay less out of pocket but premium higher, for example home insurance with $250 excess costs $1,800 per year versus $1,500 with $1,000 excess, saving $300 premium but higher excess. For car insurance, $250 excess low, many choose $500 to $800 excess to reduce premium 10% to 20%. For jewellery insurance, $250 excess means you pay $250 for $10K ring theft claim, receiving $9,750, while $0 excess standalone $150 to $300 per year means you pay $0. So $250 excess means you pay first $250 of any claim, insurer pays remainder up to sum insured.