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Travel insurance and coronavirus: Everything you need to know about 'Covid cover'

How can you get travel insurance for your Covid-secure summer holiday?
How can you get travel insurance for your Covid-secure summer holiday?

Travel insurance has never been more important. The global lockdown left millions of holiday plans in tatters, while ongoing uncertainty about the virus, along with the prospect of having your destination removed from the UK quarantine-free list, remain major issues.

In the spring, in the face of rising cancellations, many firms took the decision to stop selling travel insurance. According to consumer guide Which?, almost half of the UK’s major insurers had removed their travel policies from sale by April.

Now travel is back, holidaymakers need to be protected should Covid-19 interrupt our overseas trips. Unfortunately, insurance providers are still in struggling to formulate policies that address all the risks associated with the crisis.

Tui, the UK’s largest tour operator, recently announced that all its British customers will receive free coronavirus insurance, which will be automatically added to new and existing bookings. But there remains a lack of clarity, with many unsure about whether to plan that long-awaited trip.

Here we answer some of the important questions around travel insurance and ‘Covid cover’.

Will my travel insurance cover Covid-19 disruption?

The annoying answer to the obvious first question is: it depends. Each policy varies widely, and it will matter when you bought it. Telegraph Travel’s Nick Trend said: “If you bought your insurance before mid-March then it may well still cover cancellations – though policies issued after that nearly all have an exclusion for Covid-19 and other pandemics.

“Before either booking or travelling, it is wise to check through your policy with extra care to be sure you know what it covers.”

If you have an annual policy it is worth speaking to your advisor to see if you are covered. Many bought before March 2020 will cover coronavirus-related issues; it’s highly likely that any new policies, even with the same insurer, will not have the same benefits.

Which firms are offering coronavirus cover?

Tui’s safety net is comprehensive, and free to all customers until at least the end of the year. It applies to all new and existing bookings, covering hotel and flight costs should an infected traveller be forced to self-isolate abroad, medical expenses related to the virus and the cost of testing in suspected cases. Similar policies have been launched by Jet2holidays and Hays Travel, as well as UK travel trade association Abta.

Saga announced in June that it was including treatment for Covid-19 and repatriation as standard for all travel insurance, holiday and cruise customers – according to a survey of their customers, 74 per cent would be unlikely to purchase travel insurance if it didn’t cover the virus.

StaySure has confirmed that all its travel insurance policies will provide cover for emergency medical treatment and repatriation if a customer is infected with coronavirus abroad, whereas CoverForYou also extends to cancellations if you test positive before your trip; Trailfinders and Coverwise offer similar levels cover. Nationwide is the only bank offering Covid cover.

A trip to France seems fairly safe – make sure your insurer feels the same way - GETTY
A trip to France seems fairly safe – make sure your insurer feels the same way - GETTY

What could be included, and what might be excluded?

Presuming you are able to get insurance that has a policy on coronavirus, you will generally find that your coverage is split between those who will cover everything related to issues arising from Covid-19 and those who will only look to reimburse you for medical expenses while overseas. The key difference is the cancellation clause – should you be unable to travel due to a diagnosis of coronavirus or other related disruption – and this is where you need to be careful.

From August 12, anyone taking out a new policy with Saga can claim up to £10,000 per person if they need to cancel their holiday because of a positive Covid-19 test up to 14 days before their departure date. Only a very small number of insurers – including Jet2 and Nationwide – extend their coverage to hotel closures when you’re abroad.

Changes to Foreign and Commonwealth Office (FCO) office advice, such as warning against all but essential travel, is another element to consider. Take CoverForYou: although cancellation cover comes as standard, if the Government changes its position towards certain countries – like it did when it imposed quarantine measures on travellers from Spain – and you decide not to travel, then you will not be covered (unless you are already on holiday and required to return home). Here, Nationwide is also among the only providers that will cover changes in FCO advice before you’ve travelled; it’s also the only one that will cover you should your destination close its borders to UK travellers. The only sticking point with the UK’s biggest building society is that you have to be an account holder to be eligible for a policy.

Which? suggested that those looking for insurance search for policies that feature “travel disruption cover”, which should allow for costs related to extended stays or any delays to be claimed.

What are airline policies?

Last month Emirates revealed that it would be offering all of its passengers a free Covid-19 insurance policy – the only major airline in the world to do so. Medical expenses of up to £135,000 are covered, as well as quarantine costs of £90 a day for up to 14 days. The benefit is automatically added to bookings whatever the class of ticket, travelling to anywhere within the current Emirates network.

Sheikh Ahmed bin Saeed Al Maktoum, the group chairman and chief executive of Emirates, said: “We know people are yearning to fly as borders around the world gradually re-open, but they are seeking flexibility and assurances should something unforeseen happen during their travel.”

Although no other airline offers equivalent insurance, Virgin Atlantic, easyJet and British Airways told The Telegraph that they would try to accommodate customers wanting to change their plans. Budget Vietnamese airline, VietJet, is offering to pay travellers £7,000 if they catch coronavirus – though lots of red tape accompanies its promise.

Lufthansa Group, which operates Lufthansa, Swiss Air and Austrian Airlines, introduced a return flight guarantee in June, a promise to get passengers home should the virus close borders or restrict travel

Emirates is the only airline to offer a Covid-19 insurance policy
Emirates is the only airline to offer a Covid-19 insurance policy

Can I ignore FCO advice and still get travel insurance?

The Telegraph’s Assistant Head of Travel, Oliver Smith, says that “contrary to popular belief, you can visit a country to which the Foreign Office advises against travel without invalidating your insurance – you just need to contact one of the few providers willing to offer cover.”

Even better, it shouldn’t cost much more than usual. Campbell Irvine, Travel and General, and Battleface are all offering policies, with cover for one-week trips to Spain on offer from around £20.

It’s worth remembering, though, that although these policies will cover the usual problems (lost luggage and ordinary medical bills, for example) not all of them will stretch to coronavirus complications; check each policy before you book.

What if I get ill when I’m abroad?

Regardless of your travel insurance, UK citizens that are taken ill on holiday within the European Union are entitled to free (or low-cost) treatment if they have an EHIC card. This is still the case while the UK is in the Brexit transition period, and healthcare is unlikely to be extended past the country’s break with the EU. Repatriation and any medical treatment outside the EU should be covered by your insurance or you will end up footing the bill.