Travel insurance that covers natural disasters

You can’t always predict the weather; if disaster strikes, it can seriously impact your trip if one occurs near your travel destination. Having travel insurance in case of an unforeseen disaster may save you money if your trip gets cancelled or you become stranded overseas and need to pay for additional accommodation and flights.

Keep in mind that some travel insurance policies include cancellation cover as an optional extra which you must add to your policy when purchasing to be covered for cancellations. Some insurers may also offer travel insurance that covers cancellation cover for any reason, meaning you may be covered for reasons usually excluded, such as change of mind.

When it comes to natural disasters and the damage they can cause, the following benefits are definitely something to look for in travel insurance policies:

• Medical costs and hospital expenses
• Trip cancellation and travel delays
• Emergency accommodation/flights
• 24/7 emergency assistance
• Luggage and personal effects
• Emergency medical evacuation and repatriation back to Australia.

Should you incur additional travel or accommodation if your plans change, you’ll need a policy with additional expense cover. Most comprehensive policies will include this in their cover but be aware that many standard and basic plans do not. Always check with your travel insurance company before paying for any additional accommodation or travel, so you know what your policy will cover.

Travel insurance with natural disaster cover may offer some compensation for cancelled or delayed flights, depending on your insurer and your level of cover. Some examples of where a comprehensive policy may cover you include:

• You purchased your travel insurance before your trip and a natural disaster occurs unexpectedly at your destination before you leave, so your flights (any maybe the rest of your trip) need to be cancelled or you need to re-arrange your travel plans.
• You need to cancel your pre-paid flights and the rest of your trip because a natural disaster damaged your home or business in Australia within a certain period prior to your departure (e.g. 72 hours).
• A natural disaster delays your flights for more than 12 hours and you need to pay for emergency accommodation and other expenses.

Keep in mind that you can’t be reimbursed twice, so if your airline company has already fully compensated you, your claim may not be accepted. If your airline company only partially compensated you, you may be able to claim for the remaining amount.

Be aware that travel insurance typically doesn’t cover the cost of purchasing new flights; instead, it typically only covers some or all of the cost if you can’t make your pre-paid travel arrangements (e.g. due to a natural disaster).

As with all aspects of your travel insurance policy, your cover for natural disasters comes with limits and exclusions that may cause your claim to be rejected. Some common exclusions include:

• Ignoring travel warnings. If you travel to an area with an active ‘Do Not Travel’ government travel alert in place, you won’t be covered.
• Illegal or risky activities. If your claim is a result of you taking risks or breaking laws, it’s highly likely it will be rejected.
• Not contacting your insurer before changing plans. You may not be covered if you change your plans or pay for alternative flights and accommodation without first notifying your insurer.
• Bad weather. While it can be inconvenient, bad weather (e.g. constant rain on your beach holiday) is not covered by your policy unless it causes financial losses such as flight delays, lost tours or uninhabitable accommodation.
• Pre-existing medical conditions. If you don’t declare your pre-existing conditions or your insurer decides they aren’t able to cover them, you typically won’t have medical cover or cancellation cover for any related losses.

Before purchasing a policy, read the PDS for the full details of the exclusions, limits, sub-limits and more.

There are different types of natural disasters that can be covered by your travel insurance policy and getting the right travel cover can help with the financial impact of a natural disaster disrupting your travel plans.

However, it’s important to understand that not all natural disasters may be covered as default under travel insurance; incidents like volcanic ash clouds and avalanches might require additional cover to be protected.

Natural disasters your policy may cover include:

• Earthquakes
• Floods
• Landslides and mudslides
• Tornadoes
• Tropical storms such as cyclones, hurricanes and typhoons
• Tsunamis
• Wildfires.

In the event you’re swept up in a storm or your accommodation is flooded, keeping your important documents (such as your passport) under wraps in water-repellent spaces to keep them safe is recommended. You might also want to protect any receipts, bank or credit card statements and boarding passes in case you need to make a claim.

By understanding the risks and potential natural disasters that may occur at your travel destination and creating an emergency plan, you’re able to enjoy your travels safely. Different locations will have different risks; for example, Bali, Indonesia is known for having floods, tsunamis and volcanic eruptions, while Japan frequently deals with earthquakes, all of which could impact your holiday. Keep an eye on the weather reports in your destination and consider taking out international travel insurance the minute you book your flight or cruise.

If you’re heading to an area where you think a natural disaster might occur, plan your activities and accommodation with safety in mind. Certain natural disasters are more common at different times of year depending on the location (e.g. typhoons are more likely in Vietnam from June to November¹), so plan accordingly.

If you’re unsure, talk to a travel agent or the hotel staff in your location, or look it up online.

First, stay calm and try to move to a safe place to seek shelter or medical treatment. Secondly, contact your travel insurer if you need assistance. You can also ring the Consular Emergency Centre from anywhere in the world on +61 2 6261 3305, and they’ll be able to direct you to the nearest English-speaking hospital and contact your family and friends on your behalf.

It is possible to get cover for volcanic ash clouds with travel insurance; it may come automatically with your cover for natural disasters, depending on your insurer and policy. However, if it isn’t included, you may need to purchase volcanic ash cloud cover as an additional extra.

Travel insurance may cover avalanches, but typically not under a standard insurance policy. So if you planning on travelling to the snow, you may need additional winter sports cover to be insured for losses or damages from on-piste related incidents.

Winter sports cover can also cover you for injuries on-piste, medical evacuation from the slopes, damaged or stolen ski gear and unused passes if the ski slope is closed unexpectedly.

Your travel insurance may cover hurricanes and cyclones if your policy either automatically covers natural disasters or you’ve purchased natural disaster cover as an optional extra. You’ll also need to have purchased your travel insurance before the storm became a known event.

Wildfires may be covered by your travel insurance policy, if you purchased your travel insurance before the natural disaster became a known event threatening your trip. If your destination is in danger of a wildfire, make sure to follow advice from the local government authorities and evacuate if necessary.

You may be covered for emergency accommodation, trip cancellation costs, medical expenses and the cost of repairing or replacing your luggage and personal effects.