How the excess works on a Spanish policy
The excess, or franquicia, is the amount deducted from every settlement and borne by the policyholder, so a claim below the excess is not worth making and one above it is paid less that fixed amount.
gelisted editorial team · Updated 15 August 2026
The short version
- The excess applies per claim, not per policy year.
- Raising the excess typically reduces the premium by 10 to 25 per cent.
- Some covers carry their own separate excess within the same policy.
- A zero excess policy costs more and encourages small claims that affect renewal.
It is the number that makes two apparently identical quotes differ by 200 €, and the one most people compare last if at all.
How it works
The insurer deducts the excess from the amount payable on each claim. On a 3,000 € claim with a 300 € excess, the settlement is 2,700 €. On a 250 € claim with the same excess, nothing is payable. It applies per claim and per policy year in the sense that each separate incident carries its own deduction, so 3 unrelated incidents in a year mean 3 deductions.
| Excess | Effect on premium | Suits |
|---|---|---|
| 0 € | highest premium | those who claim often |
| 150 to 300 € | moderate | most households |
| 500 € | 10 to 20 % lower | owners with reserves |
| 1,000 € | 15 to 25 % lower | second homes, low claim frequency |
| Separate excess on water damage | common | check separately |
| Separate excess on glass | common | often zero |
| Excess on liability claims | sometimes zero | check |
Where the separate excesses hide
A policy may show a headline excess of 150 € and carry a different one for water damage, for theft, or for damage caused by natural events. Comparing quotes on the headline figure alone is therefore misleading. The right comparison lists the excess applying to each of the 4 or 5 covers most likely to be used, which is a table any broker can produce in a few minutes.
When to raise it
When you have the reserves to absorb the first 500 or 1,000 € of a loss and you do not intend to claim for small amounts. On a policy costing 420 € a year, moving from a 150 € to a 500 € excess might save 70 € annually. Over 10 years that is 700 € against an additional 350 € of exposure the first time a claim arises, which is a favourable trade for most owners who claim rarely.
The calculation reverses for a property with recurring small water damage claims, where a low excess earns its premium.
Small claims and renewal
Claims history affects renewal pricing and, at some point, acceptance. Two small claims of 400 € each in one year can raise a premium for several years by more than the 800 € recovered. A moderate excess removes that temptation by making small claims uneconomic, which is part of why the premium falls. Keeping the policy for the losses that would actually hurt is the sensible way to use it.
Frequently asked
+What is the franquicia?
The excess: the first slice of every claim that the policyholder bears, deducted from each settlement.
+Does it apply once a year?
No. It applies per claim, so several separate incidents mean several deductions.
+How much does raising it save?
Typically 10 to 25 per cent of the premium, depending on the level chosen.
+Are all covers subject to the same excess?
No. Water damage, theft and glass often carry their own separate figures within the same policy.
+Should I claim for small amounts?
Often not. Claims history affects renewal pricing for several years and can outweigh a small recovery.
Sources
- 1Boletín Oficial del Estado, BOE (August 2026)
- 2Instituto Nacional de Estadística, INE (August 2026)