Everyone seems to know someone who is sick at the moment, as a new wave of Covid cases appears to be sweeping the country. With over half of UK adults expected to holiday abroad this summer, can travel insurance help if your plans get ruined by the virus?
The short answer is, yes, most insurers will offer some level of cover – but some providers offer more protection than others. For example, you might be covered if you need medical treatment abroad, but not if you go against UK Foreign Office advice about travelling to the region.
Here Which? explains what travel insurance can help with when it comes to Covid, before your holiday and during your stay.
Is Covid back?
Because most people aren’t testing or are only doing so at home, it’s hard to know the actual scale of people falling ill with the virus.
What we do know, however, is that there has been an increase in the number of people being admitted to hospital with Covid.
Overall, Covid-19 hospital admissions hit 4.17 per 100,000 in the week to 23 June, up from 3.31 admissions in the week before. However, the latest data for the week to 30 June show admissions appear to be stabilising at 4.14 per 100,000.
There have been suggestions in the media that a new group of Covid-19 variants, known collectively as FLiRT, are behind the recent spike in cases. But the UK Health Security Agency says it needs more data before it can draw any conclusions about the effect of these mutations.
Does travel insurance cover Covid?
More than half (56%) of UK adults plan to take an overseas summer holiday this year, according to recent survey by financial protection scheme Atol. And thankfully, the days of lockdowns and travel restrictions now seem like a distant memory.
Indeed, because Covid-19 is no longer considered a pandemic, holiday-goers aren’t required to take out any specialist insurance to cover their trip. Nevertheless the virus is still a feature in most standard travel insurance policies – that includes single trip policies, annual policies for multiple trips in a single year, and long-stay or backpackers cover, for trips that will last several months.
Every policy is different, however, so if you’re worried about an apparent spike in cases this summer, make a list of the kinds of scenario you want or expect cover for and always carefully check the policy wording first to make sure the product suits your travel needs.
Below are some general examples of the kind of protection a typical policy offers and what you’re not likely to be covered for.
What’s included?
- Cancellation cover: If you test positive for Covid and have to cancel your trip, or your airline won’t let you board after a temperature check, most insurers will refund your costs. You’ll need medical evidence to claim though.
- Medical costs: If you fall ill while on holiday abroad, the vast majority of policies should cover the costs of medical treatment and any emergency care. That includes the cost of being brought back home (repatriation) if necessary.
- Home emergencies: If a close member of your family ends up in hospital with Covid while you are away, you should be able to recoup the costs of a flight home.
- Extensions: Let’s say you fall so ill with Covid while overseas that you have to stay longer than planned. Many insurers will pay-out for extra costs incurred, such as rebooking flights or extending hotel stays.
What isn’t covered?
- Travel advice: Insurers are unlikely to provide cover if you jet off to a destination that the Foreign, Commonwealth & Development Office (FCDO) officially advises against going to. If, for example, the FCDO tells travellers not to visit due to a Covid outbreak, most insurers won’t refund the cost of your trip. You can check FCDO advice on a country-by-country basis.
- Change of heart: You won’t be able to claim for losses due to cancellation if worrying is the reason you want to cancel a trip.
- Breaking the rules: If there is a return to Covid restrictions in the destination you are travelling to, make sure you know what it is required before you set off. Insurers may not cover costs if you are turned back at the border because you haven’t followed rules correctly.
- Claiming too late: Buying a policy after a positive Covid result will also mean you can’t claim for cancellation. The cost of taking a test is also not covered.
Exceptions could be hidden in the small print
The level of Covid-related cover offered by travel insurers varies. If you fail to look beyond the marketing and read the small print, you might find yourself footing the entire bill should things go sideways.
For example, the latest Which? analysis of 129 travel insurance policies, found only 30% of products cover cancellation due to a change in FCDO advice for Covid and 28% cover cancellation for non-Covid pandemic-related restrictions imposed by the FCDO. This is under the assumption that the change in advice happened after the booking was made and the insurance had been bought.
Only 2% would cover you if you wanted to cancel your holiday because the hotel you planned to stay at closed due to a pandemic. It’s slightly better if the hotel closed after you arrive but still a very low 9% of policies.
Good news if you unexpectedly have to quarantine – 60% would cover the cost of any unused excursions during the period you have to self-isolate. While 67% would cover the costs for rescheduling travel arrangements if you were required to quarantine unexpectedly. Though, in some cases, this applies only if it is on an individual bases rather than a full regional lockdown.
It is also good to know that for policies that do offer cover in this area, this feature extends to your traveling companion if they need to quarantine with you.
- Find out more:best travel insurance companies and policies
What other rights do I have?
If Covid disrupts your travel plans, you may already by covered by the terms and conditions of the airline, hotel or package holiday provider.
For example, of the FCDO officially advises against travelling to the destination because of Covid, and the operator cancels your flight or holiday, you should then be offered a full refund or the option to rebook. But hotels booked separately, and are still open, aren’t required to refund customers who can’t travel.
As always, read the small print before you make any purchase.
- Find out more: your package holiday cancellation rights
It always pays to shop around
As always, the first step is to shop around for the best deal. Price comparison sites allow you to view multiple travel insurance quotes at a glance and also include policies for high-risk countries. The main ones for insurance are Compare the Market, Confused.com, GoCompare and MoneySuperMarket.
Once you’ve found a deal that is right for you, check how Which? reviewed the provider and policy.
Finally, check the policy wording carefully before you buy, as well as any general exclusions and conditions.
- Find out more: travel insurance explained
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