The Complete Guide To Holiday Insurance

Taking time out of regular life to travel can be an exciting and exhilarating experience. Discovering new places, exploring diverse cultures and indulging in delicious culinary delights can be extremely enjoyable. 

Holiday insurance is an important part of booking a vacation, short break or travel experience of any type. Without holiday insurance, you might be in a vulnerable position if something happens and you don’t have the proper protection to support you when you need it the most. 

Put simply, holiday insurance is an agreement between you and your chosen insurance provider. This agreement includes financial protection against unforeseen covered events that happen during your holiday or trip, such as a medical emergency or lost baggage. 

In this article, we explore why taking out holiday insurance before you travel is essential so that you don’t have to worry about something happening which may cost you a significant amount of money without insurance. 

Contents

• Why is holiday insurance important?
• What does holiday insurance typically cover?
• Different types of holiday insurance.
• General travel insurance exclusions. 
• How to choose the right holiday insurance before you travel. 

Why is holiday insurance important?

Having an active holiday insurance policy that covers your trip or vacation is vital to the success of your time away. Travel insurance can protect you when certain things happen on holiday, such as trip cancellation or the loss of your passport. 

If your holiday insurance policy has approved items that will be covered in the event of loss, damage or disruption, then it’s likely that you will be able to be compensated for any financial loss incurred as a result of these events. 

It’s hard to imagine anything going wrong on a dream trip or a much-wanted holiday, but if your flight is cancelled or your baggage is lost, it can be very difficult to enjoy your time away if you have to pay for all of the replacement costs yourself. 

What does holiday insurance typically cover?

Effective holiday insurance policies generally cover similar areas, with some differences ranging from provider to provider. Just like house or car insurance, travel insurance will protect specific personal items, belongings or aspects of personal liability. 

It’s worth carefully checking through any holiday insurance policy documents before you commit. Talk through your needs with your chosen travel insurance provider to ensure you get the right cover before you embark on a trip. 

Here are some common areas you’re likely to find on a standard travel insurance policy:

Medical emergencies

If you suffer an accidental injury or illness on your trip you should have emergency medical expenses and reasonable additional related costs covered by your travel insurance policy. 

Stolen belongings

A standard holiday insurance policy typically covers the cost of items that have been stolen, such as your camera or phone, during the period of your trip.

Cancellation or curtailment

If you experience one of the approved incidents, such as an unexpected illness or injury that leads to the cancellation or curtailment of your trip, you could receive compensation costs for non-refundable amounts you have had to pay in relation to trip bookings. 

Travel delays

Travel delays may be covered under a standard travel insurance policy, such as the delayed departure of a flight. Each policy will give you the specific details of how much you can claim for a delayed travel departure. This is usually a benefit which applies after a specified number of delayed hours. 

Personal liability

If you unintentionally cause harm to someone or damage their property, this aspect of holiday insurance could help cover legal expenses and compensation claims. 

Different types of holiday insurance

You will usually find that most insurance providers offer two main holiday insurance policies:

1. Single trip travel insurance

Single trip travel insurance is specifically designed to cover a one-off trip, break or vacation. This type of policy is useful if you’re only going on one holiday, break abroad or a single business trip which requires cover with insurance. 

It’s always a good idea to take out insurance if you’re going away to ensure you’re adequately protected should something happen to you or your belongings. Single trip travel insurance is ideal if you’re looking for convenience or booking just before you go away. 

2. Annual travel insurance

Perfect for those who want to go away more than once in a 12-month period, annual travel insurance offers flexibility as you don’t have to continually secure an insurance policy each time you travel.

Many annual travel insurance policies are seen to be cost effective as it may work out cheaper to take out one policy to cover a 12-month time period. Annual travel insurance is also likely to cover you from the day of booking, making it easier to simply book and travel without worrying about finding insurance. 

General travel insurance exclusions

Respectable and experienced insurance providers will provide you with a list of exclusions which relate to the insurance policy you have purchased. You may want to ask about exclusions when you discuss your insurance policy with your provider. 

The following list includes some of the most common exclusions for travel insurance policies:

• The cost of cosmetic surgery.
• Flying or other aerial activities except while travelling in an aircraft as a passenger.
• Motor-cycling (as a driver or passenger) on machines exceeding 125cc, quad biking, mountaineering, rock climbing, hunting, trapping, pot-holding, rafting or canoeing involving white water rapids, bungee jumping or similar activity, jet skiing, sub-aqua diving, kayaking, tubing, or organised team sports.
• Loss or theft of personal belongings, personal luggage (including valuables) and money which is not reported to the police within 24 hours.
• Loss or damage to valuables left unattended or in a suitcase in transit and outside of your control. 
• Wear and tear, depreciation, deterioration, loss of value or damage by moth, vermin, atmospheric conditions, or by any process of cleaning, repairing or restoring. 
• Delay, detention, seizure or confiscation by Customs or other officials.
• Shortages due to error, omission, change in exchange rates or depreciation in value.

How to choose the right holiday insurance before you travel

It makes sense to find your holiday insurance with an established and experienced insurance provider so you can feel reassured you’ll be supported and protected if something goes wrong. 

Creating a list of 5 key holiday insurance priorities will help you match the right policy to your needs. When you’re researching policies, read over the fine print and review the exclusions so you know the boundaries of the policy. 

At GasanMamo, we have a friendly and helpful team of experts on hand to give you advice and make sure you get the correct policy for your travel requirements. 

Take a look at our competitive and comprehensive benefits, optional extras, and holiday insurance offers on our travel insurance page.

GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.