Money and insurance
Cancellation insurance: which reasons it actually covers
Cancelling for a justified reason isn't cancelling because you no longer feel like it. The reasons that usually count, the ones that don't, and when it is worth buying.
Tomás Berruezo 5 min Photo by Narahari K R on Unsplash Cancellation insurance is the one bought unread most often and the one that generates the most arguments afterwards, because it covers a CLOSED list of reasons and not the general idea of having changed your plans.
Reasons that usually count
- Serious illness or accident of the insured person or a close relative.
- Death of a relative.
- Redundancy or dismissal, with conditions.
- Starting a new job, under some policies.
- Serious damage to your home, or being summoned as a juror or witness.
Reasons that usually don't
- Changing your mind, which is only covered by cancel-for-any-reason cover: more expensive and with partial reimbursement.
- Being afraid to travel because of a general situation at the destination.
- Work problems without a formal dismissal.
- Pre-existing conditions or pregnancies already known when you bought the policy.
When you have to buy it
In the first few days after booking. Nearly all policies require it to be bought shortly after paying for the trip, and that is the most common reason for rejection: buying it the week before travelling, when the problem is already on the horizon.
When it pays off
| Situation | Worth it? |
|---|---|
| Expensive, non-refundable trip | Yes |
| Trip with flexible flights and a cancellable hotel | Usually not |
| Travelling with older people or small children | Yes |
| Dates tied to an event with tickets | Yes |
| Cheap weekend break | Almost never |
And how to claim
With documentation: medical report, dismissal letter, certificate. A genuine reason with no paper to back it cannot be paid, and telling the insurer as soon as you know the cause is part of the conditions.
The rest of a travel policy's cover is in what travel insurance really covers.
Frequently asked questions
Which reasons does cancellation insurance cover?
A closed list: serious illness or accident, death of a relative, dismissal, serious damage to your home and a few more depending on the policy.
Can I cancel because I changed my mind?
Only with cancel-for-any-reason cover, which is more expensive and usually reimburses only part.
When do I have to buy it?
In the first few days after booking. Buying it shortly before travelling is the most common reason for rejection.
What do I need to claim?
Documentation proving the reason, such as a medical report or a dismissal letter, and telling the insurer as soon as you know the cause.
