Whether on vacation internationally or domestically, is it worth buying travel insurance? Travel insurance provides financial security when facing problems that may arise when traveling or on holiday. It covers the losses and unforeseen costs that can be associated with traveling.

Have you wondered about the following?

• What does Travel insurance cover?

• What does Travel insurance not cover?

• Trip cancellation or Interrupted coverage

• Personal Effects coverage

• Emergency medical coverage

What does travel insurance cover?

Some companies selling travel tickets and packages, give customers the option to buy travel insurance. Most of these policies cover damage to personal belongings, rental car and even ransom costs that may arise when traveling.

Most policies cover the following:

• Damage, loss or theft of personal belongings (luggage)

• Medical emergency expenses

• Cancellation, delay or ending trip early

• Disruption or cancellation to travel or accommodation

• Legal cost that may arise during travelling

What does Travel Insurance not cover?

A lot depends on the policy and the insurer. There are a few things that travel insurance policies generally don’t cover:

• If you’re over 65 and/or have a medical condition, you might need specialist insurance. If you have a medical condition, you have to tell your insurer. If you don’t tell them, you risk invalidating your insurance policy. 

• Adventure sports, winter sports and potentially dangerous activities

• You’re not covered for travel to countries or regions that the Foreign and Commonwealth Office recommends avoiding.

• Very expensive or luxury items

•  If your trip is affected by civil unrest, natural disasters, pandemics or acts of terrorism.

Trip Cancellation or Interrupted Coverage Insurance

Trip cancellation or interrupted coverage insurance protects the traveler in the instance of cancelling or interrupting the trip. This is done as a reimbursement for non-refundable or prepaid travel expenses. Acceptable reason for reimbursement would be death in the immediate family, weather related issues and business conflicts.

Personal Effects Coverage

Personal effects coverage covers baggage and personal items in the event of the items being lost, stolen or damaged during a trip. Most travel agencies and carriers will reimburse customers if personal items are lost or damaged during the trip, however the amount that is reimbursed is limited. Personal effects coverage provides the customer and their baggage with full protection during their trip.

Emergency Medical Coverage

There are two main types of medical travel insurance that is provided is major medical insurance and short-term medical insurance.


Medical travel insurance aids with medical expenses that occur when travelling. This includes healthcare facilities and emergency medical care. Coverage and policy will differ according to the policy provider. Some policies will even provide foreign hospital care, medical evacuation and airlift travel.

Major medical insurance covers the client for longer trip stays ranging from six months to a year or longer. Short term medical insurance covers the client for a shorter period of time, often ranging from five days to a few months, depending on the policy.