What does holiday cancellation insurance cover?
Holiday cancellation insurance policies tend to cover the cost of pre-booked flights and transport, accommodation, and any other expenses you’ve paid or agreed to pay and can’t recover from any other source.
In order to qualify for a payout, the circumstances must be ‘unforeseen’, or out of your control. For example:
- Being summoned for jury service
- The death of a close relative (as long as they weren’t knowingly ill when you took out the policy)
- A natural disaster
- A flood or fire at your home
- An accident, or illness
- Your destination becomes unsafe to travel to
For all of the above it’s best to check your individual policy details as the cover can differ.
On this last point, if you’ve booked a holiday and feel the country has become unsafe, check out the Foreign Office travel advice website. They have a long list of countries, for which they advise against ‘all travel’ or ‘all but essential travel’. If your holiday destination is deemed unsafe, your tour operator is usually legally obliged to offer you a full refund or an alternative holiday.
Make sure you read the small print to see exactly what your policy covers.