‘Can I cancel a holiday over coronavirus?’

Neil Harmes had been looking forward to his forthcoming trip to Tenerife – until he read the news. The hotel he booked, H10 Costa Adeje Palace, is now in lockdown, leaving around 700 people trapped after four guests tested positive for coronavirus.

“I’m due to arrive on March 16 and the quarantine is expected to last until March 10. Even after that, the hotel has said it will need to do a deep clean, and who knows how long that will take,” said Mr Harmes, 60, from North Wales.

Even if the hotel is ready in time, he says he is not sure he will go, because of the health risks. “I have travel insurance but I’m not sure I’ll be covered if I cancel,” he said. “I’m not even sure if it’s safe to travel anymore.” The Foreign and Commonwealth Office (FCO) has not yet put out any warnings about travel to the region.

Mr Harmes said he has received no communication from the hotel about potential disruption to his stay.

He is not alone. With flights cancelled and people quarantined after visiting outbreak-stricken areas, millions of holidaymakers have been affected. Many will be wondering whether they should cancel and, if they do, whether they will get their money back. What they are entitled to varies wildly by insurer, airline and travel provider. Here, Telegraph Money explains your rights.

YOUR REFUND RIGHTS

The FCO’s travel advice is crucial. If it has warned against “all travel” to a destination, then airlines and package holiday providers must provide a full refund. If they don’t, customers can raise an official complaint. Package holiday firms may offer an alternative trip to a “safe” location, but customers do not have to accept. If their travel provider refuses a refund, they could also claim on their insurance.

Telegraph Money contacted 12 of the biggest insurers and found that all would provide full refunds in this case. Direct Line and Churchill place a £5,000 limit on claims.

Where the FCO has warned against “all but essential travel” to an area, refunds are down to the discretion of airlines, so here again, travellers may need to claim on insurance. Aviva said its customers would only be covered in this scenario if they had purchased a “travel disruption” upgrade. This add-on can increase the price of some policies by more than 40pc. Package holiday companies are expected to offer a refund or alternative trip.

For travel to countries where no official advice has been issued, holidaymakers who want to cancel over the coronavirus are unlikely to receive a refund from airlines, holiday companies or insurers.

Some insurers, such as Saga and M&S Bank, will consider on a caseby-case basis and others, including Axa, the AA, Staysure and the Post Office, said it would depend on the policy purchased.

As millions of families face travel disruption, Marianna Hunt and Katie Morley explain your rights

YOUR HEALTH WORRIES

Studies suggest that the elderly and ill are most at risk from the coronavirus, yet people who cancel

trips because of age or health concerns could find themselves out of pocket.

Unless tickets state otherwise, customers have no absolute right to a refund for directly booked flights or package holidays. Refunds are down to the provider’s discretion.

However, all the major travel insurers have said they will consider providing cancellation cover if “vulnerable” customers are worried about the coronavirus and their health. Unless customers have already been medically screened by their insurer, they will probably have to provide a note from their doctor saying they are unfit to travel to a coronavirusaffected area. If the doctor refuses to provide a sick note, you can pay a small fee for a copy of your medical history, which may suffice. Customers should check with their insurer first.

THE RISK OF QUARANTINE

Hundreds of holidaymakers, including the 160 Britons trapped in the hotel in Tenerife, have been placed under quarantine abroad, unable to return home for at least 14 days.

Those in this situation may not be refunded for a missed flight home by their airline. Only British Airways said it would pay out.

Instead, customers could claim on their insurance. Axa, Aviva and LV= will cover your costs to get home should you miss your flights. Staysure said it would only do so where a travel disruption clause had been included. Saga, M&S Bank, Co-op, Direct Line and Churchill said they would consider cases on an individual basis. Saga said customers would only be covered for up to £1,000. The Post Office said the costs of bringing people home