If you are planning a holiday this summer, it is crucial to carefully review your insurance policy details to avoid unexpected losses.
Many insurance policies exclude coverage for losses related to war, as Debbie and Ardon Rainbird from Northallerton in North Yorkshire experienced firsthand.
The couple were stranded for an additional two weeks during their holiday in Sri Lanka after their return flight via Doha, Qatar, was cancelled due to the outbreak of conflict involving Iran.
Although they held an annual travel insurance policy, it did not cover war-related incidents, resulting in a loss of approximately £1,000. Their tour operator covered some of the extra accommodation costs, after which they relocated to a budget hotel.
Had they purchased an additional insurance add-on, these expenses would have been covered.
"It is frustrating because you budget for a holiday," Debbie said. "But we were incredibly lucky compared with others."
While the cost of insurance has remained relatively stable, travel insurance options for destinations in or near Middle Eastern conflict zones have significantly decreased, according to analysts at Defaqto.
Below are five essential insurance questions to consider before booking your summer holiday.
1. What am I covered for - and what am I not?
Insurance policies become invalid if you travel to locations where the Foreign Office advises against travel. For instance, current guidance advises against all travel to Iran.
"It is always worthwhile checking the policy details though or speaking with the provider as the policy may include some travel disruption coverage which could extend to civil unrest or airspace closures,"said Anna-Marie Duthie, travel insurance expert at Defaqto.
While some policies cover disruption and cancellation costs, the primary purpose of travel insurance is to cover emergency medical treatment that may be required abroad.
2. Will I be covered if a jet fuel shortage affects my holiday?
The Association of British Insurers (ABI) states that airlines are responsible for offering alternative flights or refunds when operational issues, such as jet fuel shortages, cause cancellations.
If you book your trip using a credit card, you may be able to claim from your card provider for services like accommodation that you did not receive.
When flights and accommodation are booked separately, travel insurance might cover some unused, non-refundable costs, but only if the policy includes cancellation cover and the cause of cancellation is covered.
Defaqto notes that claims related to geopolitical issues may not be covered.
3. Am I still covered if I change destination?
If you decide to change your holiday destination due to regional conflicts, you must inform your insurer, especially if switching to a different part of the world, such as from Europe to the US.
This change may result in an additional charge.
4. What if I don't want to go away at all anymore?
If you have already booked travel to a destination later deemed unsafe by the Foreign Office, you should not travel and can claim on your insurance.
However, if the Foreign Office considers travel safe but you choose not to go, insurance will not cover this change, known as disinclination.
Experts recommend contacting your holiday provider to modify your destination or travel dates, although this depends on availability and may incur extra costs.
5. Does it matter when I buy my insurance policy?
Consumer experts and the ABI advise purchasing travel insurance as soon as you book your trip to ensure coverage if the trip is cancelled, for example, due to illness within your party.
Most travel insurance policies are invalid if purchased while already on holiday.
Additionally, policies typically do not cover claims related to "known events." If a situation escalates before you buy insurance, coverage may be limited.
