Travel insurance - are you covered for events such as ash clouds?

This weeks re-appearance of the volcanic ash cloud puts travel insurance policies under scruitiny

12:30PM BST 10 Jun 2011

The Icelandic volcanic ash has already caused British Airways, Ryanair and easyJet flights to be cancelled in the run up to the bank holiday weekend. Although there are plans to allow aircraft to fly underneath dense concentrations of ash cloud, it may still threaten to ground some flights if it returns to our airspace.

With the status of flights changing regularly when there is ash in the sky the question is: what happens if your flight is grounded? Will your travel insurance policy provide ash cloud compensation if your holiday is disrupted?

Many different types of travel insurance are available to buy on the market, ranging anywhere from five-star cover, cheap insurance for a few pounds, and free cover that comes with a bank account or credit card. A range in price obviously means a range in the cover provided by the policy, from comprehensive cover to the very basic and everywhere in between, so it pays to find out what you are covered for before you buy.

Unsurprisingly, not all travel insurance policies will provide cover if you are subject to disruption to your holiday as a result of the ash cloud.

David Rudd, Retail Director from Heath Lambert, arranger of Telegraph insurance said: “The best thing to do is to check directly with your insurer to find out whether you are covered. Even if your flight is subject to delay rather than cancellation you may be able to claim on your policy to help pay for telephone calls, meals and refreshments during the delay.”

Indeed, according to independent insurance research company Defaqto, 22 per cent of annual travel insurance policies offer between £30 and £250 for travel delay in the first 12 hours. So, it’s worth finding out what your policy covers if you already have travel insurance in place; or, if you need to buy cover, take a few minutes to read through the Policy Booklet so that you know what you are entitled to if you do incur problems.

What if I book my own flights and hotels?

If you book your flights independently and they are cancelled, you are entitled to a full refund from the airline, or to be booked onto the soonest available flight to your final destination. You will not be covered for any further arrangements you have made for your holiday, including hotels, car hire or missed excursions, unless your travel insurance covers it, or they were all booked as a package.

What if I am on a package holiday and can’t get home?

Package holidays bought from a travel agent or tour operator that includes the flight with other components such as transfers or a hotel, should provide you with protection under The Package Travel, Package Holidays and Package Tour Regulations 1992. In this case the agent or operator is legally obliged to get you home if your flight is cancelled, but it could mean that you are subject to delay or need to take alternative transport.

What do I need to look for in my travel insurance policy?

Policies that include protection for travel disruption due to adverse weather conditions, and volcanic ash clouds. Telegraph travel insurance through its arranger Heath Lambert, offers travel disruption cover as an optional extra to its standard policy. It is particularly suited to those who like to arrange their own travel and accommodation, as it covers financial loss of pre-paid accommodation, travel and excursion costs following cancellation, delay or missed departure of your connecting flights, due to strikes or volcanic ash clouds. It also covers for the delay of connecting transport at up to £100 per person. If, after a five-hour delay, you decide to abandon the trip, or are denied boarding, there is cover of up to £5,000 per person. And if you are unable to use the accommodation you have booked and need to make alternative arrangements, it provides up to £5,000 of cover per person. You must have had the cover in place for a minimum of seven days for all of this to be valid.

In most cases it’s wise to get cover for your holiday to start as soon as you buy it, so that if there are problems in the run up to your trip and you need to cancel, you are covered for any losses. Just remember that cheap cover is not always the best value for money, and if you usually rely on cover provided free as a part of other financial products, then check that you are adequately protected.

To get a travel insurance quote arranged by Heath Lambert, call 0800 496 1797 or buy travel insurance online.