Half of all travel insurers do not cover terrorism

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It's not something any of us like to dwell on when going on holiday, but unfortunately terrorism is a fact of life and something to bear in mind when purchasing insurance. New studies show that many insurance companies exclude terrorism in their standard policies. Indeed, travellers have been warned to check the small print when purchasing an insurance policy as it has been found that only 50% of all travel insurers will issue a payout in case of a terrorist attack.

Although 5 to 10 years ago it would have been very unlikely that anyone would ask for insurance against terrorism, the demand is on the rise due to the increasing threat. It is strange that most companies provide holidaymakers with insurance that covers loss of life, and yet so many remove themselves from the ever growing danger of terrorism which counts as "force majeure", an extremely unpredictable and unlikely event.

There are now, however, a number of companies which do include terrorism as standard in their cover and the situation is certainly improving. As a spokesman from the Association of British Insurers Malcolm Tarling explained, it is prudent to check before a purchase by reading all the terms rather than assuming anything, as you may find a better policy that covers terrorism for the same price.

For those who are worried about cancellations in the light of a possible terrorist attack, the situation is far more complicated. For example, if you have a holiday planned and new warnings are given out that the area has become unsafe, it is unclear whether this would count as a legitimate reason for cancelling the holiday, according to your insurance policy. According to experts, what matters most when determining if someone is eligible for compensation in such situations is whether the official safety advice about a particular area or country from the Foreign and Commonwealth Office changes after you have booked. In these cases it is almost certain that the holidaymaker will get some kind of refund from the insurance company or at least an opportunity to change their arrangements.

The most important thing is to make sure you have read the small print carefully as there are often very subtle ways in which your situation could be excluded from cover. Protection against terrorism may not be uppermost on your mind, but you should certainly look out for it when buying a policy to make sure you are covered just in case.


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