Quick summary for busy readers
- Travel insurance may cover you if a natural disaster directly disrupts your trip, depending on your policy and circumstances.
- You may be able to claim for things like cancellation costs, additional accommodation, transport or medical expenses, subject to your policy's terms, limits and exclusions.
- Timing matters: once a natural disaster has occurred and becomes a known event, new policies generally won't cover losses arising from that event.
- Being worried about travelling isn't necessarily enough to make a claim. The natural disaster generally needs to directly affect your destination or travel arrangements.
- If you're already overseas, prioritise your safety. Follow advice from local authorities and contact your insurer's emergency assistance team if you need help.
- Keep receipts and evidence of disruption if you incur additional expenses or need to make a claim.
- Buy travel insurance when you book your trip, rather than waiting until closer to departure, and always check the PDS to understand what natural-disaster-related cover is included.
Travel insurance and natural disasters
Earthquakes, floods, cyclones, bushfires and landslides can turn a dream holiday upside down in a matter of minutes.
One minute you're relaxing by the pool, exploring a new city or setting off on an adventure. The next, flights are cancelled, roads are closed and you're trying to work out whether you can get home.
While you can't predict when or where a natural disaster will strike, you can take steps to prepare before you travel — including understanding how your travel insurance may respond.
When does travel insurance cover natural disasters?
Natural disasters are generally considered unforeseen events. Depending on your policy and the circumstances, travel insurance may provide cover when a flood, earthquake, cyclone, bushfire or other natural disaster directly affects your trip.
This could include cover for things such as:
- Cancellation costs if you can't travel because your destination or prepaid travel arrangements are directly affected.
- Additional accommodation and transport expenses if you become stranded and need to make alternative arrangements.
- Medical expenses if you're injured during a natural disaster.
- Travel disruption costs if flights, tours or other prepaid travel services are affected.
But — and this is important — cover isn't automatic in every situation.
Your policy needs to include the relevant benefits, and the disaster generally needs to directly affect your travel plans. Policy limits, exclusions and other conditions can also apply.
Timing matters
The biggest thing to remember when it comes to natural disasters and travel insurance is timing.
Travel insurance is designed to cover unforeseen events. Once a natural disaster has happened and becomes a known event, you generally can't buy a policy and expect it to cover losses arising from that particular disaster.
For example, if you buy travel insurance before a cyclone develops, you may have cover if it subsequently disrupts your trip. But if you wait until after the cyclone has already made headlines and then purchase a policy, claims relating to that known event are unlikely to be covered.
Different insurers may set different dates for when an event becomes known, so always check directly with your insurer.
What if I'm already overseas when a natural disaster happens?
Finding yourself in the middle of a natural disaster while overseas can be frightening, particularly if you're stranded or injured.
Your first priority should always be your safety. Follow instructions from local authorities and emergency services, and contact your insurer's emergency assistance team if you need help.
Depending on your policy and circumstances, travel insurance may help with eligible costs such as:
- emergency medical treatment
- additional accommodation
- alternative transport arrangements
- changes to your travel plans
In some circumstances, your insurer may also assist with arranging evacuation or alternative transport if you are unable to continue your journey. However, you shouldn't assume every evacuation or associated expense will automatically be covered.
What if I haven't travelled yet?
If you have upcoming travel plans to a destination affected by a natural disaster, your cover will generally depend on whether the event has directly disrupted your trip.
For example, you may have cover for eligible non-refundable expenses if:
- your accommodation has been damaged or becomes inaccessible
- your flights are cancelled
- roads or other essential infrastructure prevent you from reaching your destination
- a tour or other prepaid travel service can no longer be provided
However, if your travel arrangements are operating normally and you simply decide you no longer want to travel because you're concerned about the situation, this may not be covered.
Travel insurance generally requires an insured event to have directly affected your plans — a change of mind alone is unlikely to be enough.
What about evacuation?
When people think about travel insurance and natural disasters, they often assume that evacuation is automatically covered.
Unfortunately, it's not always that straightforward.
Emergency medical evacuation may be covered when it is medically necessary, while other types of evacuation or alternative transport may depend on the circumstances and the terms of your policy.
If you're stranded following a natural disaster, contact your insurer's emergency assistance team before making expensive arrangements where possible. They may be able to help coordinate your next steps.
How to prepare for a natural disaster while travelling
You can't prevent a natural disaster, but a little preparation can make a stressful situation easier to manage.
Buy travel insurance early
Don't wait until the week before departure to buy your travel insurance. Purchasing cover when you book your trip can help protect you against unforeseen events that occur in the lead-up to your holiday.
Remember, once a natural disaster becomes a known event, it may be too late to purchase cover for losses arising from it.
Research your destination
Before travelling, take the time to understand the risks associated with your destination.
Some countries experience regular cyclones, earthquakes, floods or bushfires at particular times of the year. Knowing what to expect can help you prepare and make informed decisions about your trip.
Keep an eye on official advice
Before and during your trip, monitor advice from local authorities and relevant government travel advisories.
Conditions can change quickly during a natural disaster, particularly when transport routes and communications are affected.
Save important contact details
Keep your insurer's emergency assistance number and policy details somewhere easily accessible.
You should also have the contact details for family members, your accommodation and your country's embassy or consulate.
Keep your documents accessible
If you need to leave quickly, having your passport, travel insurance details and important medication easily accessible can save valuable time.
What to do if your holiday is affected by a natural disaster
If a natural disaster affects your trip, try not to panic. Take things one step at a time.
Put safety first
Follow instructions from emergency services and local authorities. Don't put yourself at risk to retrieve luggage or continue with your travel plans.
Contact your insurer
If you need assistance, contact your insurer's emergency assistance team as soon as possible.
They can explain what support may be available and, depending on the situation, help you make arrangements.
Contact your travel providers
Speak with your airline, accommodation provider, tour operator or other travel providers to find out whether they can rebook, refund or amend your arrangements.
Your insurer may require you to seek compensation from the relevant provider where appropriate.
Keep your receipts
If you incur additional expenses because of the disaster, keep itemised receipts and documentation.
You may also need evidence showing how the disaster directly affected your travel arrangements.
Check before making expensive arrangements
If possible, speak to your insurer before booking costly accommodation, flights or other alternative arrangements.
This can help you understand what expenses may be eligible for cover.
Don't let the unexpected stop you travelling
Natural disasters are unpredictable, and being caught up in one while travelling can be stressful. But understanding your insurance before you leave can make a difficult situation easier to navigate.
The most important things to remember are to buy travel insurance early, understand what your policy covers and prioritise your safety if something goes wrong.
A natural disaster can disrupt even the best-planned holiday, but with the right preparation, you'll be in a much better position to deal with the unexpected.
