Travel insurance is a must when heading abroad, as it covers holidaymakers from theft and injury, among other things.
However, many may be asking whether they are covered in the event of a natural disaster and they are caught up in the danger.
It is certainly a valid question in light of the recent earthquake in Mexico, as well as Hurricane Irma and Maria decimating the Caribbean islands.
However, the wording in some policies may catch some poor travellers out.
Travel insurance policies may offer “travel disruption cover” but it is within this that travellers need to be careful.
It is worth checking what it counts as a disruption, as a hurricane or a flood, if not explicitly mentioned, may not be covered.
Some travel insurance, such as Sainsbury’s, state their travel disruption cover included “natural disasters” as well as evacuation and emergency accommodation costs.
Yet, many travel insurance policies including Sainsbury’s have a clause that state if the natural disaster was already known about before travelling, the policy will not protect them.
This could also include buying a policy after the disaster becomes a “known event” such as hurricane being named or a volcano has been reported when erupting.
Back in 2010, thousands of holidaymakers were affected when an Icelandic volcano caused an ash cloud to cancel hundreds of flights.
Many tourists were stranded, unable to make their way home due to this.
However they thought they were covered by their travel insurance yet as the word “volcano” was not stated in their policies, many lost most of their holiday money and didn’t receive a payout.
This meant that they were unable to be reimbursed for any lost flights, accommodation or additional transport costs.
Therefore it is always worth not just checking if they cover for natural disasters, but what natural disasters are included in and are classified as when specified.
However, it was recently revealed that nearly half of Britons travel without holiday insurance.
The study by ABTA found that 38 per cent of 25 to 34-year-olds admitted they didn’t ever purchase it, as they were willing to risk it.
In the event of an accident, it could mean thousands of pounds lost.
Susan Crown from the Foreign and Commonwealth Office assured those willing to risk it that “The FCO cannot pay medical bills if you are hospitalised abroad nor can we fly you home.”
