Travel insurance cancellation cover

Does travel insurance cover cancellations?

Yes, cancellation cover is typically included as standard in most policies. Cancellation cover reimburses non-refundable, pre-paid costs if you can't travel.

The amount of cancellation cover varies depending on the policy, but most standard policies include some level of cover. Let's take a look at what's typically included:

• Unforeseen illness or injury: If you, a close family member, or someone you're travelling with falls ill or gets injured.
• Bereavement: If a close family member, or someone you're travelling with, passes away.
• Major delays: Provides cover if your flight is delayed by more than 12 hours and you decide not to go on your trip as a result.
• Redundancy: If you're unexpectedly made redundant and can no longer travel.
• Police requirements: If the police need your presence at home for an emergency within 48 hours of your departure.
• Jury duty or court summons: If you're called up for jury duty or need to appear in court as a witness.

Some policies may also cover cancellations if the government issues a warning against non-essential travel to your chosen destination, but only if the warning was issued after you booked.

It's always a good idea to check the UK’s Foreign, Commonwealth & Development Office (FCDO) advice before travelling. You should also double-check your policy details to see if cancellations for FCDO warnings are covered.

You should also check the maximum payout limit of your policy and ensure the limit covers the full cost of your holiday. If the amount isn't enough, you could be left out of pocket.

Does travel insurance cover cancellations due to illness?

As long as the illness developed after the policy was purchased, cancellation cover should reimburse costs.

If illness is due to a declared pre-existing condition, you should be covered, unless otherwise stated by your insurer.

However, if cancellation is due to an undeclared pre-existing condition, you won't be covered. This includes any conditions you're being treated or tested for but haven't yet received a formal diagnosis.

Failing to declare a pre-existing condition can mean your insurance is invalidated and any related claim rejected.

Does travel insurance cover cancellations due to family illness or bereavement?

These situations are typically covered as long as they were unexpected and occurred after the policy had been bought.

If a family member has died, their death mustn't be related to a known pre-existing condition.

This usually only covers close or immediate family members, for example, a spouse or partner, children, parents, grandparents, siblings, or grandchildren. It can also include in-laws, but what is covered can vary depending on the policy.

It's important to carefully read through your policy documents before buying so you know exactly what's covered.

Does travel insurance cover flight cancellations?

Cancellation cover doesn't typically apply if the airline or tour operator cancels, as they're responsible for refunding or rebooking.

It does apply if you can't travel due to a specific personal reason covered by the policy, though. Always check details about flight or holiday operator cancellations before you buy your policy.

Does travel insurance cover hotel cancellations?

Yes, travel insurance can cover non-refundable bookings that need to be cancelled due to an insured reason. But the coverage depends on whether you are cancelling or the hotel is cancelling.

Insurance will only reimburse you for non-refundable costs if the cancellation is due to an unforeseen, covered emergency. If the hotel cancels, travel insurance generally won't cover this because the responsibility falls on the hotel to refund you or rebook you.

If the hotel goes bankrupt and you can't get your money back through your credit card issuer, your travel insurance might include supplier failure or financial insolvency coverage to reimburse your losses. Always check your policy documents to be certain of your insurer's specific terms and conditions.

What doesn't cancellation cover include?

There are some situations that won't be covered by travel insurance:

• Changing your mind: Simply changing your mind about travelling is not a covered reason.
• Flight cancellations by the airline: Airlines should provide compensation for cancellations directly.
• Planned strikes or known events: You won't get a payout if a strike or industrial action was known about prior to travelling. This also applies to natural disasters.
• Misbehaviour: If you're turned away for anti-social behaviour like drug or alcohol abuse.
• Undeclared medical conditions: Failing to declare a medical condition means you won't be covered for any claim related to that condition.
• Travelling against FCDO advice: If the FCDO warn against travelling to a country and you book anyway.

It's important to note that events included in cancellation cover must be unexpected and occur after the policy has been purchased.

How much cancellation cover do I need?

The cover amount should match the total cost of your non-refundable trip expenses. That includes flights, accommodation, and pre-booked tours.

It's a good idea to add up all pre-paid costs and choose a policy where the cancellation limit meets or exceeds this total.

Does the cover amount reset for each trip on annual travel insurance policies?

Yes, the cover amount usually resets for each trip, and the exact cover amount per trip will be detailed in the policy documents. So, if you take out a policy with £5,000 cancellation cover, you'll be able to claim up to this amount for each trip you need to cancel unless the policy states otherwise.

Some annual travel insurance policies will cover a set number of trips per year, so it's important to check that each trip is covered before booking.

It's important to buy annual travel insurance as soon as the first trip is booked, as cover begins from the purchase date.

Do I pay an excess on travel cancellation cover?

Yes, you typically pay an excess on travel cancellation cover. The excess is the agreed-upon amount you must pay towards a claim, which the insurer automatically deducts from your payout.

Alongside the compulsory excess, you can sometimes choose a voluntary excess amount. Agreeing to pay a higher amount out-of-pocket usually lowers your premium but means you receive a smaller payout if you have to cancel.

Is the travel cancellation cover amount applied per person?

This depends on the policy, but it's often applied on a per-person basis. For example, on a policy with £5,000 cancellation cover, a family of 3 travelling together could claim up to £5,000 each (as long as they're all named on the policy).

Make sure to read policy documents before buying to fully understand your specific cover amounts, and whether it's applied per person or not.

When should I buy travel insurance with cancellation cover?

It's important to buy cover immediately after booking your holiday, or as soon as you pay the deposit.

Cover starts from the purchase date for cancellation, even if the trip date is months away. This means you're covered in case you need to cancel the holiday at any time. If you buy it too late, you won't be covered for any unforeseen events that have already happened or are imminent.