There are a few variables you need to understand in home insurance. All insurance policies have a coverage limit. The insurance provider needs to set a claim limit – the amount they will pay in case of damage or property loss. But some properties are costly and need more coverage. That's where Excess Limit comes in. You can buy an excess limit policy over your primary policy to cover damage that exceeds the primary policy's limit. For example, say you take out a primary home insurance policy of AED 3 million and an excess limit policy of another AED 3 million. If your property is damaged for up to AED 4 million, your primary policy will pay AED 3 million, and your excess limit policy will pay the remaining AED 1 million.