Travel insurance cancellation cover explained

What is cancellation cover?

Cancellation cover is one of the most important elements of travel insurance. It reimburses the non-refundable costs of a trip if you have to cancel before departure for a reason covered by the policy. Without it, you could lose the full cost of your flights, accommodation, and other bookings.

Covered reasons typically include

• Illness, injury, or death of the insured traveller or a close relative.
• Redundancy (genuine, not voluntary).
• Jury service or being called as a witness.
• Your home being made uninhabitable by fire, flood, or other insured peril.
• Some policies also cover Foreign Office advice against travel to your destination.

Common exclusions

• Cancellation due to a pre-existing medical condition not disclosed when the policy was taken out.
• Disinclination to travel (change of mind).
• Known events at the time of booking (e.g. a strike that was already announced).
• Financial failure of the travel provider (often covered separately by ATOL or a financial failure extension).

How much cover do you need?

Match the cancellation limit on your policy to the total prepaid non-refundable cost of your trip per person. Use our cancellation cover calculator to total up your prepaid costs and check whether your existing cover per person is sufficient.

Take out insurance immediately after booking

Cancellation cover only applies from the date the policy starts. If you book a holiday now but don't take out insurance for three months, you have no cover for any cancellation in that period. Take out insurance as soon as you book.