Trip Cancellation And Natural Disasters

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Are you covered to cancel your trip in the event of a natural disaster? The answer will depend on your choice of insurer.

In recent times natural disasters like volcanic eruptions, hurricanes, tsunamis and earthquakes have hit the widespread media and affected countless travellers around the world. It's certainly not improbable that the weather could turn sour at your trip destination. So would travel insurance cover you to cancel your flights, acccomodation and additional costs in the event that an earthquake or hurricane was to strike at the heart of your holiday plans?

Like every type of insurance there are conditions you need to pay attention to. For instance, while your insurer may cover natural disasters, if you've chosen a 'basic' policy, with no cancellation benefits, you would not be eligible to claim for cancellation.
 
In the majority of cases Australian travel insurance policies do cover for cancellation in the event of a natural disasters. However there are a few insurers worth paying attention to as the conditions of their cover may vary.

Insurers Natural Disasters

The following table highlights which insurers do and do not automatically cover natural disasters.

 
General Advice Warning: The contents of this article were accurate at the time of writing. Insurers change their policies from time to time, so some information may have changed. You should always read the Product Disclosure Statement of your chosen insurer to understand what is covered and what isn't. The information provided is of a general nature only and does not take into account any personal objectives, financial situation or needs. Before making a decision you should consider the appropriateness of the information having regard to your personal circumstances.

Tips For Buying Travel Insurance

It's important to know that there are some scenarios where you can invalidate your cover. The following points explain when you are unlikely to be covered in regards to natural disasters.
 

• Travel insurance purchase as an afterthought
  You wouldn’t be covered if you decided you needed to purchase after a travel warning had been issued. For example, if you heard about a hurricane warning in the mass media and only then did you decided to buy insurance, you couldn't cancel your holiday and claim for any out of pocket expenses.
   
• Intentionally putting yourself in harm’s way
  If you decide to visit a destination with a heightened travel warning and you were aware of the risks but decided to go anyway, it’s unlikely that you would be able to claim.
   
• Deciding not to go 
  You are unlikely to be covered for wanting to cancel your trip ‘in response’ to a travel warning. For example, if a destination is known to be experiencing problems and a travel alert is heightened before your trip commences, you wouldn’t be covered for any claims relating to cancellation if you just decided not to go.

• General exclusions
  Most standard travel insurance policies have a set of general exclusions that apply to your cover. So regardless of when a travel warning is issued, and whether you took advice from the government or not, you may find you will not be insured for certain events. General exclusions that tend to be across the board include: Strikes, riots, civil protest and political instability, any act of war, terrorism, any event to do with nuclear or chemical weapons, contagious diseases and/or epidemics or pandemics.