Holiday insurance: Five questions to ask before you book

A couple from Northallerton, North Yorkshire, recently faced unexpected costs after their return flight from Sri Lanka was cancelled, highlighting the importance of carefully reviewing travel insurance policies before booking a holiday. Debbie and Ardon Rainbird were caught out when their flight via Doha was cancelled amid escalating conflict in the Middle East, resulting in an additional two-week stay abroad. Despite holding an annual travel insurance policy, the couple discovered it did not cover incidents related to war, leaving them approximately £1,000 out of pocket. Although their tour operator covered some additional accommodation expenses, they had to move into a budget hotel later on.

Travel insurance policies vary widely in what situations they cover, and many exclude losses related to war or conflict zones unless specific add-ons are purchased. Debbie Rainbird expressed frustration at the financial burden despite budgeting carefully for the trip, but also acknowledged they were fortunate compared to others affected by similar disruptions. According to analysts at Defaqto, while the cost of travel insurance largely remains stable, travelers now face fewer policy options when visiting or transiting areas near conflicts in the Middle East.

One key consideration for holidaymakers is understanding precisely what their insurance covers and where it does not. For example, insurance generally becomes void if traveling to countries where official government advice discourages travel, such as Iran at present. However, some policies may offer partial coverage for travel disruption caused by things like civil unrest or airspace closures. Insurance expert Anna-Marie Duthie from Defaqto recommends reading the policy details or talking to the provider to clarify these points. While emergency medical treatment abroad is typically covered, cancellation and disruption benefits differ significantly between policies.

Other important questions to keep in mind include whether insurance covers flight cancellations due to operational issues like jet fuel shortages, and whether customers need to inform insurers if they alter their travel destination. If travel is cancelled because the Foreign Office declares a destination unsafe, insurance should provide protection, but if individuals simply decide not to go despite no change in official advice, this “disinclination” is usually not covered. Finally, purchasing travel insurance promptly after booking is essential, as waiting too long—especially until already abroad—or buying after a known issue arises may reduce or void coverage

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