Travel insurance: what it covers and what it excludes

Travel insurance is a contract, not a safety net, and its value depends on a short list of covered events, limits and exclusions. The useful question before you pay is what the wording says about emergency medical costs, cancellation and the things you plan to do on the trip.

What a typical policy covers

Most international policies are built around emergency medical treatment, emergency transport such as an ambulance, and the cost of getting you home after treatment if your original ticket cannot be used. Many also add baggage delay or loss, trip cancellation or interruption, personal liability and a 24-hour assistance line. The UK government's guidance asks travellers to confirm each of these rather than assume them: gov.uk.

The medical section carries the most risk

Emergency treatment and hospital bills abroad can be very expensive, and emergency transport is often charged separately from other medical costs. Some hospitals ask for payment or a guarantee before treatment, so a policy that reimburses later still leaves you needing a way to pay first. Check whether the insurer runs a 24-hour helpline that can speak to the hospital and confirm cover while you are still in the emergency department.

Pre-existing conditions must be declared

Conditions you already have, including ones still under investigation, need to be declared when you buy the policy. An insurer may cover them, cover them for an extra premium, or exclude them. Leaving a condition out can invalidate a claim entirely, which is why a written confirmation of cover matters more than a verbal yes. Canada's travel health guidance also asks travellers to check any stability clause, which sets how long a condition must have been unchanged before cover applies: travel.gc.ca.

Exclusions that catch people out

Read the exclusions before the benefits. Common ones include:

• Injury or illness after heavy drinking or recreational drugs.
• High-risk activities such as bungee jumping, jet skiing, winter sports, quad bikes or mopeds, unless added on.
• Travel to a destination that officials advise against visiting.
• Loss of unattended luggage, however the policy defines unattended.
• The financial failure of an airline, hotel or tour operator.
• Events such as strikes or civil unrest that were already public when you booked.

Package holidays and flights sold in the UK may be protected by the ATOL scheme instead, which covers the operator going out of business rather than your medical costs: caa.co.uk.

Check the policy against your actual trip

Compare three things: the dates and the maximum trip length, the destinations including any transit country, and the full list of activities. Then look at the excess, the documents a claim needs and whether cover continues after you return home. This is general information about how policies are written, not advice on any particular policy.

Bottom line: buy for the medical cover and the exclusions, declare every condition, and keep the policy wording with your travel documents.