Travel insurance is one of those things that many people arrange when booking a holiday and then hope they never need to use.
Most of us book holidays with excitement. We think about the destination, the experiences, the memories we’re going to create and the time we’ll spend with the people who matter most.
The last thing anyone expects is that a health issue could mean they’re unable to travel.
However, over the last couple of months, we’ve supported six clients through unexpected cancellations, and it highlighted one very important lesson: having travel insurance is not always the same as being fully protected.
Six cancellations, all for health reasons
Every one of these cancellations was health-related and completely outside our clients’ control.
Five of these holidays were so close to departure that, under the supplier terms and conditions, they were in a 100% loss situation. The holidays were non-refundable, meaning our clients would have lost the full cost of their trips if no solution could be found.
Thankfully, every client did have travel insurance in place.
But one situation highlighted something that every traveller should understand.
Having travel insurance is important, but the level of cover you have matters just as much.
Why checking your cancellation cover is so important
One of our clients had a valid travel insurance policy. The issue was not that she wasn’t insured. The issue was that the cancellation cover included within her policy was not enough to cover the full value of her holiday.
Her policy had a cancellation limit of just 10% of the total cost of her trip.
This meant that although she had insurance, the maximum amount the insurer would pay towards cancellation was only 10% of the holiday value.
For example, if your holiday costs £20,000 but your cancellation cover limit is £2,000, that is the maximum amount your insurer would pay, even though you have a valid policy.
This is something many travellers don’t realise. When arranging travel insurance, it’s not enough to simply check that you have a policy. You need to make sure the cancellation cover is high enough to protect the full value of your holiday if you’re unable to travel.
This is particularly important for higher-value holidays, cruises, family trips and tailor-made itineraries where the costs can quickly add up.
The value of booking with us…
Thankfully, because this client had booked through us, we were able to step in and use our relationship with our supplier partner, Africa and Beyond.
Working together, they were incredibly supportive and agreed to move the entire trip back by one week. Every element of the original itinerary was saved, and the only additional cost was the replacement flights, which unfortunately could not be avoided. The alternative would have been losing the holiday completely.
Of course, we cannot replace travel insurance, and we will always encourage our clients to make sure they have comprehensive cover in place.
But when something unexpected happens, having someone who knows your holiday, understands the suppliers involved and can advocate on your behalf can make a huge difference.
Our advice: check your cover before you travel
Nobody wants to think about cancelling a holiday, but health issues can happen to anyone at any time.
Before booking your next trip, we recommend checking:
- Does your policy cover the full value of your holiday?
- Is your cancellation limit high enough?
- Are all travellers included on the policy?
- Have all new and existing medical conditions been declared?
- Does your policy cover the type of holiday you are taking, such as cruises, multi-centre trips or winter sports?
Travel insurance is not a legal requirement, and ultimately the decision to take out a policy is a personal one. However, it is something we always remind our clients about at the point of booking.
Not because we’re trying to sell an insurance policy, but because we want our clients to check they have the right protection in place and understand what their policy covers.
A holiday is often a significant investment, and the last thing anyone wants is to discover their cover isn’t enough when they need it most.
Our role is not just to help you plan incredible holidays. It’s to make sure you feel supported and informed throughout the journey, from the moment you start planning to the moment you return home.