You’ve bought your travel insurance and you’re heading off on holiday. But are you actually covered for the things that could go wrong? The Financial Ombudsman Service has reported a 28% increase in calls to its helpline from consumers angry that insurers had not paid out on claims. Sadly, in many cases a closer look at the small print revealed that the claimant wasn’t covered. So what do you need to be checking the small print for?
First, check who is covered and where you are covered to go. Only 13% of policies included as part of a bank-account package cover anyone other than the account holder and their spouse, says The Independent on Sunday. Similarly, many family travel-insurance policies don’t cover children if they don’t live full time with the policyholder. So if you’re separated, taking children on holiday and you are not their full-time carer, double check they are covered.
Also make sure you know exactly where you can and can’t go. Even if you have a worldwide policy you still need to be careful. There are parts of the world where it’s not considered safe to travel and many insurance policies will be invalidated if you go there. Currently, the Foreign & Commonwealth Office (FCO) advises against travel to parts of Thailand, India and Sri Lanka. If you head into those areas you may invalidate your travel insurance. So check the FCO’s website before you set off and, if in doubt, contact your insurer.
Another common way travel insurance is invalidated is by an undisclosed existing medical condition. Make sure you declare everything – even past conditions that you have recovered from – and if in doubt, check with the insurer. Cancerhelp.org.uk has a list of insurance brokers who can help those who have, or have had, serious medical conditions to get insurance.
And if you are planning on doing anything adventurous make sure your insurance covers it. Most of us wouldn’t expect our insurer to cover us for sky-diving, but did you know that some don’t even cover cycling?
Finally, check whether you are allowed a drink. Some travel insurance policies have an exclusion cause related to consumption of alcohol. So if you have a couple of glasses of wine at dinner then slip, you may not be covered. There have been some absolute horror stories relating to this particular clause, so don’t become another victim.
So, it may not be a gripping read, but make sure you look at the small print of any travel policy before you buy.