Travel insurance is one of those purchases people make in a hurry at the end of a booking and never read. That is how most claims get refused.
What it is really for
Not lost luggage. The reason to hold travel insurance is medical cover and repatriation, and the numbers involved are the reason.
A hospital admission abroad can run into five or six figures, and getting someone home with a medical escort routinely costs more than the holiday. Everything else the policy covers is incidental by comparison.
What it typically covers
Emergency medical treatment and repatriation. Cancellation and curtailment for a listed set of reasons. Lost, stolen or delayed baggage, usually with a modest per-item limit. Personal liability. Travel delay, usually a small fixed payment after a set number of hours.
The exclusions that catch people
Pre-existing conditions you did not declare. The commonest reason a large medical claim fails. Declare everything, including conditions you consider resolved. A higher premium is cheaper than a refused claim.
Activities not on the list. Standard policies frequently exclude skiing, diving, climbing, motorcycling and anything described as an extreme sport. Check the list, not the brochure.
Alcohol. Many policies exclude claims where alcohol was a contributing factor, and that is interpreted broadly.
Unattended possessions. A bag left on a beach while you swim is almost never covered.
Undeclared valuables. Single-item limits are low. Expensive cameras and jewellery usually need naming separately.
Cancellation for reasons not listed. Deciding not to go is not covered unless you bought cancel-for-any-reason cover.
When it is worth it
Always, for anything involving a flight or a country where healthcare is billed. The cost is trivial against the exposure.
Annual multi-trip policies are usually cheaper than two single trips, so if you travel twice a year the arithmetic is easy.
Practical
Buy it when you book, not when you leave — cancellation cover only works if it exists before the thing that causes the cancellation.
Carry the policy number and the emergency line somewhere you can find it without your phone.
And ring the insurer before major treatment where you can. Most policies require it, and it is also how you avoid paying up front.
