Holiday Cancellation

How to Insure Against Holiday Cancellation

How to Insure against Flight Cancellation?

Most people plan for their holiday months in advance and often there are sizeable deposits which need to be paid in order to procure bookings at home as well as abroad.

In fact, some airlines require tickets to be purchased at full fare and are non-refundable so that when a holiday needs to be cancelled or curtailed due to some unforeseeable event, a good bit of money could be lost.

Before paying extraordinary amounts of money for travel arrangements, accommodations and entertainments, it would be a good idea to learn how to insure against holiday cancellation.

Holidays in the UK vs. Holidays Abroad

Usually holiday cancellation cover can be broken down into two broad categories. The first is when travelling inside the UK and the second is holiday cancellation cover when travelling abroad.

When travelling within the UK it would probably not be necessary to purchase a broad holiday insurance policy because those policies usually have medical benefits and such cover as loss of passport.

How to Insure against Holiday Cancellation

A holiday cancellation policy for visiting within the UK would specifically be designed to cover cancelled or curtailed holidays in situations where the insured becomes ill, is injured or has fallen prey to other unforeseen situations which make travelling impossible at that time.

UK holiday cancellation insurance typically carries excess which can be chosen when purchasing the cover, but quite often the excess is £50 or more.

Take into account that most hotels and lodgings not only require a deposit when booking, but may have requirements that the total reservation be paid in full whether or not you are able to stay for the entire duration. This will be charged against your credit card and can be quite expensive, especially if you haven’t been able to take advantage of your stay. UK holiday cancellation policies can cover the cost minus the excess in situations where it becomes necessary to cancel your bookings.

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Travel Cancellation Insurance

Another important aspect of holiday cancellation insurance is the travel component of your holiday. There are policies available that only cover travel arrangements and not accommodations or entertainments. Within the past few years travel cancellation insurance has been made available within the UK to protect against the potential for airlines and other carriers going under financially. This type of cover is generally less than £10 and would enable you to recover the cost of your tickets, minus any excess if it is written into the policy.

However, travel cancellation insurance is also available to cover flights which are grounded due to bad weather, volcanoes, hurricanes and other natural or manmade disasters. This type of holiday insurance may also cover travel cancellation due to the illness or death of covered persons with exclusions such as suicide or illness resulting from the use of illegal drugs. Whether travelling within the UK or abroad, this is type of insurance usually only covers travel arrangements but may also be included in a policy with other benefits such as medical emergency and repatriation as well.

Depending on your destination and the cost of the trip, it is important to weigh the cost of holiday cancellation insurance against the potential for loss. If you will not be staying within the UK, a broad cover with major medical may provide the best protection because it will pay for more than just the cost of travel cancellation. On the other hand, if you are going to be staying within the UK where your NHS would pay medical expenses, travel cancellation may be all you require. In any event, the loss you could accrue due to holiday cancellation could be quite dear. Compare cover and costs between companies to guard against holiday cancellation to find the cover that is best suited to you.

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