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Holidaymakers face unexpected costs due to insurance exclusions
Couple from North Yorkshire incurred £1,000 in extra expenses after their return flight from Sri Lanka was cancelled amid escalating tensions in the Middle East, only to discover their travel insurance did not cover war-related disruptions.
The Rainbirds' experience
Debbie and Ardon Rainbird were stranded for an additional two weeks in Sri Lanka when their connecting flight through Doha was cancelled as conflict erupted in Iran. Despite holding an annual travel insurance policy, they found themselves uncovered for war-related losses.
Their tour operator covered some of the extra accommodation costs, but the couple still faced significant out-of-pocket expenses. Debbie Rainbird expressed frustration, noting, "You budget for a holiday, but we were incredibly lucky compared with others."
Analysts at Defaqto highlight that while insurance costs remain stable, fewer policies now cover travel to regions near or involved in conflicts.
Key questions to ask before booking
1. Does the policy cover Foreign Office travel advisories?
Travel insurance becomes void if you visit a destination where the UK Foreign Office advises against all travel, such as Iran. However, some policies may include limited coverage for travel disruptions like civil unrest or airspace closures, according to Anna-Marie Duthie, a travel insurance expert at Defaqto.
2. What are the medical coverage limits?
The primary purpose of travel insurance is to cover emergency medical treatment abroad. Ensure the policy provides adequate protection for potential health-related expenses.
3. Who is responsible for flight cancellations?
Airlines must offer refunds or rebook flights if cancellations occur due to operational issues, such as fuel shortages, as outlined by the Association of British Insurers (ABI). For non-refundable costs like accommodation, travel insurance may cover losses if the policy includes cancellation protection and the reason for cancellation is covered.
4. Are geopolitical risks covered?
Claims linked to geopolitical events, such as war or civil unrest, are often excluded from standard policies. Review the fine print to understand what scenarios are covered.
5. What happens if you change your destination?
If you decide to switch your holiday destination, notify your insurer. Changing from Europe to the U.S., for example, may result in additional charges. If the Foreign Office later deems your booked destination unsafe, you can claim on your insurance. However, if you cancel due to personal concerns while the destination remains safe, you may not be covered-a situation known as "disinclination."
When to purchase travel insurance
Consumer experts and the ABI recommend buying travel insurance as soon as you book your trip. This ensures coverage if the trip is cancelled due to unforeseen circumstances, such as illness. Most policies are invalid if purchased after you have already departed.
Additionally, policies may not cover claims related to "known events." If a situation escalates after you book but before you purchase insurance, you may find limited coverage available.
Expert advice
"It is always worthwhile checking the policy details or speaking with the provider, as some policies may include travel disruption coverage."
Anna-Marie Duthie, Travel Insurance Expert at Defaqto
