Make sure you insure your UK holiday

If you're holidaying in the UK, it still makes sense to take out travel insurance.

“Most people wouldn’t normally take out travel insurance for a staycation – after all, the NHS will cover health problems,” says David Byers in The Sunday Times. “However, travel insurance will protect you if, for example, you have to cancel your holiday before it starts because of a family illness or bereavement.” Travel insurance will also pay out if your belongings are stolen during your trip.

You may also be covered for the cost of additional travel and activities for a trip you can no longer go on. “If your holiday company double-books your accommodation and then refunds you, you might still have lost out financially because you paid for a ferry or train to get there. Almost all policies will cover this.”

If you already have an annual travel insurance policy, it will cover holidays in the UK. Alternatively, “it costs £10 to get a standalone policy offering £500 baggage plus £1,000 cancellation and cover to protect a fortnight’s staycation”, says Neil Simpson in The Mail on Sunday.

Just make sure you read the small print. “For a UK holiday to be classed as a holiday, it needs to be for a minimum of two nights and it has to be more than 25 miles from your home or involve a sea crossing,” Tony Forchione of Money Saving Expert, told The Sunday Times. 

While policies will cover commercial premises such as hotels and bed and breakfasts, privately rented cottages may be exempt. Cancellations owing to Covid-19 may not be covered as it is now a “known risk”. If, however, your trip is cancelled due to a local lockdown, “your hotel should cancel your reservation and then refund you”, says Byers.

Protect yourself from cancellations due to Covid-19 with flexible bookings: those that are fully refundable if you need to cancel or offer free amendments if you need to change the date.

Recommended

How to avoid inheritance tax by giving your money away
Inheritance tax

How to avoid inheritance tax by giving your money away

Ruth Jackson Kirby explains how to avoid inheritance tax by passing money on to your family while you are still here.
24 Nov 2020
Cash-poor homeowners should beware of equity-release
Equity release

Cash-poor homeowners should beware of equity-release

Struggling savers should think twice before using equity release schemes to tap their homes for money.
24 Nov 2020
For the best savings rates you can find now, forget the high street banks
Savings

For the best savings rates you can find now, forget the high street banks

If you're looking for any sort of return from a savings account, forget the high-street, says Ruth Jackson-Kirby. Here's where you'll get the best rat…
20 Nov 2020
Pension dashboard remains on the drawing board
Pensions

Pension dashboard remains on the drawing board

Online pension dashboards, first unveiled by the government in 2016, are unlikely to be available until 2023, the Department for Work and Pensions has…
20 Nov 2020

Most Popular

Jim Mellon: the world is on the brink of three major revolutions
Share tips

Jim Mellon: the world is on the brink of three major revolutions

Jim Mellon has been giving MoneyWeek’s readers lucrative ideas ever since our very first issue. He tells Merryn Somerset Webb how he sees the next 20 …
5 Nov 2020
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
6 Nov 2020
November 2020 update: how the MoneyWeek investment trust portfolio has fared
Investment trust model portfolio

November 2020 update: how the MoneyWeek investment trust portfolio has fared

How have our favourite investment trusts been doing? And what would we change?
6 Nov 2020