How travel insurance works if your holiday is disrupted by war

Hundreds of thousands of Britons have been stranded across the Middle East by the Iran conflict and many more could see holidays cancelled due to flight restrictions and airport closures.

However, people who purchased travel insurance to protect against such disruption might be out of luck.

Travel insurance often excludes protection against war, said the Daily Express, so “you may not be covered by your holiday insurance at all”.

How travel insurance works

Travel insurance typically covers a “range of possibilities”, said MoneyHelper, such as lost luggage, medical care and disruptions including delays and cancellations.

But unless you have a specialist policy, most standard travel insurance won’t include losses linked to a war, “meaning disruption to your trip”, said the Association of British Insurers. Extra costs you may have, such as food and hotels, may not be covered.

There may be some protections if government guidance on a destination changes after you booked, such as if the Foreign Office advises against travelling to a country.

If the guidance changed after you booked, said Axa, travel insurance coverage “may apply” and your policy may cover you for getting home or let you cancel your trip and get a refund for flights, hotel bookings and tours.

Travel disruption rights explained

It is always worth checking with your airline or travel provider when there is disruption such as delays or cancellations before claiming on your travel insurance. Most travel insurance policies “don’t cover claims if the losses can be recovered from another source”, said the Financial Ombudsman Service.

As the Foreign Office guidance changed on the Gulf, customers who have already booked have the right to cancel a package holiday.

If you are stuck in a destination such as Dubai or Abu Dhabi, package holiday operators “have an obligation to book you on the next available flight home”, said The Sun.

Airlines typically have to pay compensation if they are at fault for a delay. But those flying in and out of the UK and European Union, or with a non-UK or non-EU airline, should not expect redress, as the airlines are not at fault for the outbreak of war. However, there is a duty of care for airlines to look after affected passengers. This means they should help with rearranging flights and provide food, drink and accommodation.

But don’t rush to take a refund from your airline while you are stranded as “it manages down the problem at little cost to the carrier”, travel expert Simon Calder said in The Independent. You are better off hanging on to your ticket and “hope that eventually they come up with an alternative journey for you”.

It is also worth checking if the local destination is providing support. The United Arab Emirates has publicly said that it is “bearing accommodation and hosting costs for affected passengers” amid the Iran conflict, said Condé Nast Traveller, so many travellers “won’t need to pay for hotels at all” and won’t need to claim on insurance. However, you may still need your insurance for “extra expenses” such as missed onward connections or medical costs.