Ensure you have Covid insurance cover for holidays
People planning future holidays are being warned to make sure they are not left with gaps in their cover if something goes wrong.
There are significant differences in what travel insurance policies will and will not cover in terms of coronavirus, analysis by Defaqto found.
Its analysis of products found that 98% will not cover cancellation costs should the advice being provided by the Foreign, Commonwealth and Development Office (FCDO) change after booking a trip but before travel.
Just over six in 10 (61%) will cover cancellation costs if someone tests positive for Covid-19 before they travel.
Defaqto did find that 95% will cover medical expenses should someone catch Covid-19 while on holiday. It said given that medical care can run to tens of thousands of pounds, this is important cover. Anna-Marie Duthie, travel insurance expert at Defaqto, said: “Insurers have been quick to develop new products to cover people who want to travel in these uncertain times.
“This is great news for anyone who is looking to book a holiday, but you must check the policy carefully as there are some big differences. The travel industry is keen to get people booking holidays again and many will offer you the option to switch your destination or delay your holiday if you have to cancel due to Covid-19.
“It is particularly worth booking on a credit card where you can, so you have additional purchase protection. In these uncertain times, the best thing to do is to ensure you have the right protection for your needs.
“Simply taking out a travel insurance policy may not be enough. Carefully consider your own requirements such as the cost of the holiday and the level of cover you would need in place to cover those costs, should you be affected either directly or indirectly by this virus.”
Malcolm Tarling, a spokesman for the Association of British Insurers (ABI) said: “Travel insurance is priced to cover unforeseen events, not those like Covid known when the policy was taken out.”