Travel Insurance & Natural Disasters - The Complete Guide

Travel insurance and Bushfires

Bushfires, brushfires, wildfires, whatever you call them, large-scale fires can erupt out of the blue and cause major devastation to surrounding communities.  With a tendency to spread rapidly, an uncontrolled fire combined with dangerous weather conditions can have lethal and unprecedented results.

Australia in particular is prone to some of the world’s worst bushfires thanks to hot, dry conditions and recent ongoing droughts. Those in the vicinity of a major bushfire are advised to stay informed, stay aware and avoid all known danger zones.

What isn't covered?

• Choosing not to travel because of a risk of fire: Your insurance company will only pay out if your destination is classed as "uninhabitable" or your transportation is "significantly delayed". Simply deciding not to go does not give cause enough to claim.
   
• Claiming on known events: Once the fire is reported in the news, it becomes a known event. This means that any policy you purchase AFTER the fire has been widely reported will not cover you for any costs incurred as a result of the fire.
   
• Ignoring travel warnings: If you do not heed travel warnings - particularly governmental travel warnings - you are effectively straying into a danger area of your own accord. Insurance companies don't take kindly to this kind of recklessness, and your cover may be invalidated.

It's getting hot! how can I claim?

Sure-fire tips to stay safe

• Be responsible: If everyone took steps to eliminate fires, the risk of fire danger would be far lower, so do your bit to limit any potential hazards. Don’t smoke in areas that are an obvious fire risk, pay attention to warnings and remain vigilant for any imminent dangers.
   
• Be aware: It may be a good idea to make a specific bushfire plan if you're in a prone zone. Ensure everyone in your group knows what to look for, how to leave quickly, and where you can seek shelter if the worst happens.

Get fired-up for your trip, but don't get burnt! Follow these tips and enjoy an exciting, inspiring and, above all, safe holiday.

travel insurance and tremors: the truth about earthquakes

The Earth’s tectonic plates are constantly moving, at times even colliding with one another. This produces a tremendous amount of energy in the earth’s surface, creating huge vibrations, leading to earthquakes. Although we only tend to hear about the worst occurrences, thousands of little earthquakes actually take place each year.

Where do earthquakes occur?

World's worst quakes

The following earthquakes take precedence as some of the absolute worst of recent times.

• Valdivia, Chile, 1960
  With a magnitude of 9.5 on the Richter scale, this disaster goes down as one of the worst quakes ever. It killed 1,655 people, injured 3,000 and caused up to $550 million worth of damage to Chile. It also spawned a collossal tsunami that destroyed parts of Hawaii, Japan and the Philippines and triggered a nearby volcanic eruption too.
• Sumatra, Indonesia, 2004
  The resulting tsunami of this 9.1 rated earthquake killed 227,900 people and displaced a further 1.7 million. The earthquake is reported to have affected over 14 countries, with its effects seen as far away as Antarctica and North Africa.
• Sendai, Japan, 2011
  This colossal earthquake and ensuing tsunami is recorded as the costliest natural disaster of all time. In addition to triggering a meltdown at the Fukoshima nuclear plant (resulting in a radiation leak) over 15,891 people lost their lives and a further 2,500 are still reported missing.
• Christchurch, New Zealand, 2011
  Closer to home, this earthquake came just six months after an even more powerful one. Occurring on a fault line that was shallow and close to the city, this quake was especially destructive, killing 185 people and injuring several thousand.
• Anchorage, Alaska, 1964
  As North America’s worst earthquake (and the second largest ever measured) this magnitude 9.2 quake ripped apart Alaska’s landscape. Despite the devastation, only 139 people died as the earthquake hit on Good Friday, when most people were at home or church.

Is it safe to travel to destinations where Earthquakes occur?

Luckily, major earthquakes occur only a few times a year and the odds of an earthquake occurring during a short visit are unlikely. Additionally, modern technology continues to improve and has made it easier to predict when and where an earthquake is likely to rumble.

Does travel insurance cover earthquakes?

If an earthquake has occurred at your holiday destination either before or after you’ve left home, you may be covered. But, before you travel it’s worth understanding the terms of your cover.

When you are covered

If the earthquake was not a known event when you bought your policy you would be covered for:

• • Cancellation (before you’ve left): If you’ve not left yet, benefits will be paid if the earthquake forces you to cancel and claim for out-of-pocket expenses (provided the policy was purchased prior to the cancellation).
  • Cancellation (when already abroad): If you are within the earthquake zone you will be covered for travel and accommodation costs involved in moving you to new accommodation (if your booked accommodation is deemed uninhabitable). If your flights have been cancelled you would also be covered for any additional flight costs.
  • Medical costs: Should you incur any injuries as a result of an earthquake, benefits would be paid towards your treatment.
  • Emergency medical evacuation and repatriation: In the event that you require emergency evacuation or medical treatment cannot be administered locally you would be evacuated to the nearest medical facility. Repatriation costs would also be covered In the event of your death.

When you’re not covered

• • Travel against warnings: If you intentionally put yourself in harm’s way and travel to a country or region against governmental travel advice, you do so at your own peril. You will not be covered for anything that relates to the travel warning.
  • Known events: Once an event is known in the mass media (i.e. big tremors have begun, a snow storm is forecasted or a volcano has erupted) you wouldn’t be eligible to buy cover for any losses incurred, or claim to cancel your trip. Insurers will set cut-off dates, for instance travellers affected by the Nepal earthquake who had purchased cover prior to April 25, 2015 were eligible to claim. After the 25th, you could no longer purchase cover for the Nepal earthquake event.
  • Insufficient cover: Remember that Basic (or medical only) policies would cover for any medical claims in regards to earthquakes, but would not cover travel delays, lost luggage or trip cancellation as a result of an earthquake.
  • Claim for any reason: There would be no cover if your existing travel plans were not directly affected by the earthquake or if you just had a change of heart about your trip.
  • Accommodation cover: Your place of residence would have to be uninhabitable for you to make a claim (i.e. the hotel not meeting expectations or a broken pool would not suffice).

Natural Disasters Claim tips

• • Get it down on paper: If your flights have been cancelled or delayed due to an earthquake be sure to get any written proof of such events from your airline.
  • Contact your insurer: Before you go ahead and pay for any extra accommodation or flights check in with your insurer that they will cover any added costs.
  • Keep receipts: Your insurer will need some type of proof of payment in order to pay out your claim. Hold onto any boarding passes, receipts or credit card statements.

What should I do in an earthquake?

The recent devastating earthquake in Nepal killed and displaced thousands of people. Whilst a tremor this size is said to occur only once every hundred years, the quake had catastrophic consequences due to Nepal’s poorly built infrastructure. Whilst the odds of getting caught in an earthquake on holidays are unlikely, it’s always good to prepare for the worst. With popular tourist destinations such as Japan, Nepal and Indonesia all bearing the brunt of sizable earthquakes it’s important to have the facts and understand any necessary safety procedures.

Firstly, if you’re travelling to an earthquake-prone region you should buy travel insurance and get a good understanding of the fine print. As well, make sure you’re registered at Smartraveller. Get to know the emergency phone numbers procedures for the region and keep your passport and photo ID secured or with you at all times. If you happen to be living overseas when an earthquake strikes an emergency back-up plan can be a very wise idea.

Earthquake survival tips will vary but it’s worth understanding the local safety codes. For instance, in countries with modern infrastructure, such as Japan, it’s thought that the best place to be during an earthquake is under a table in the middle of a room. On the other hand, in countries with structurally unsound buildings, the rule of thumb is to evacuate immediately. Brushing up on the area’s safety procedures can make all the difference when it comes to your security.

Depending on the state of disaster around you it may be advisable to return home immediately. If you are safe but have found yourself stranded due to cancelled flights and damaged infrastructure, you may incur significant accommodation and travel costs. Although these would be reimbursed by travel insurance, it’s advisable to keep any additional expenses to a reasonable minimum and hold on to your receipts.

No matter how experienced or conscientious a traveller you are, an unpredictable event such as an earthquake can turn your holiday upside-down. Making sure you’ve got travel insurance and understanding any significant exclusions can be the first step in managing a natural disaster.

Travel insurance and hurricanes

Hurricanes are just strong winds, right? Wrong. By definition, winds must reach 120 kmph before they are classified as a hurricane.  They are amongst the most indiscriminately lethal and devastating events that nature can throw at you. While hurricanes are relatively rare, they are powerful enough to ruin a holiday. 

Where are hurricanes likely to strike?

Hurricanes can strike almost anywhere, but that doesn’t mean you need to cancel your trip and spend the holiday wrapped in a blanket under the bed. You just need to know the risks associated with: a) the location you are visiting, and b) the time of year. The Atlantic hurricane season usually lasts from May to September, but it is vital to read up on information specific to where you are going. Places such as the coast of North Carolina, the Bahamas or the Cayman Islands have hurricanes on average once every 1.5 years, so the risk is fairly high. Always keep an eye out for weather warnings and take heed of advice from the government before you travel.

Our map shows the typical paths of tropical revolving storms.

World's worst hurricanes

The following hurricanes take precedence as some of the worst of recent times.

• • Hurricane Pauline, 1997
    Working it's way up the Mexican coastline, Pauline dumped torrential rainfalls with 16" of rain in Acapulco alone! The relentless downpour caused disastrous land slides in some of Mexico's poorest villages, killing roughly 250-400 people and leaving a striking 300,000 people homeless. Beyond all the lives destroyed, Hurricane Pauline caused a massive amount of damage, exceeding $7.5 billion.
  • Hurricane Mitch, 1998
    Winds of up to 285km/h battered Florida and Central America for two weeks in 1998, doing over $6billion worth of damage and claiming 11,000 lives.
  • Kenna, 2002
    A category 5 hurricane, Kenna was the 3rd most intense Pacific hurricane to ever strike Mexico's West Coast. 140 mph winds and a 16-foot surge devastated the coastline, causing $101 million dollars in damage.
  • Hurricane Katrina, 2005
    In terms of devastation, Katrina is notable, ranking as the most costly natural disaster in the history of the United States. It also ranks as one of the five deadliest hurricanes in the U.S, killing 1,833 and injuring thousands more. 

Does travel insurance cover hurricanes?

It's getting windy! In most cases travel insurance does cover you for natural disasters. The following are some of the typical events you can claim for.

• Cancellations before you leave: Non-refundable hotels, extra trips or added extra costs to your holiday that you cannot recoup can be claimed for. As well, you have provision to claim any extra expenses if you are forced to cancel your holiday before you have left.

• Cancellations when already abroad: You will also have provision to claim if you are forced to cancel your holiday once you are already abroad. Provided you are within the designated disaster area, you can claim for the funds required to find alternative accommodation in a safe area.

• Medical costs: Medical costs should always be covered, even on the most basic of insurance plans. Any injuries you incur as a direct result of the hurricane will be covered, provided you have not invalidated your insurance policy. Emergency medical evacuation will usually also be covered.

What could blow my cover?

Even if your travel insurance does cover losses, damage or injury caused by a hurricane can still be invalidated. Here’s how:

You might think of hurricanes as random, rampaging monsters, but in fact the weather bureau will often give out warnings well in advance of a hurricane. Always heed weather reports and travel warnings; if you are specifically advised not to travel because of a hurricane warning, your insurance company is unlikely to cover you in the event of a wind-related mishap!

Something else that could pose a problem is taking out insufficient cover. You wouldn't wander into a rainstorm without an umbrella, so don't stray into hurricane territory without appropriate insurance. Basic travel insurance will cover you for medical bills only, leaving you unable to claim for damaged belongings, cancellations or other monetary losses in the event of a hurricane. 

Top tip: Keep an eye on the cut-off dates for claim submissions, and keep a copy of your insurance policy's fine print with you at all times. You don't want to be precluded from claiming because of a technicality!

When the wind picks up, what do I need to remember?

A handy rule of thumb; to ensure a successful claim, keep everything! Keep a record of every event that occurs as a result of the hurricane and get documented evidence or confirmation from airlines, local authorities, hotels or other businesses.

After you contact your insurer, don’t make any large payments until you receive confirmation that the payment will be covered. Keep a record of your communications and ask your insurer to do the same.

Once you’ve got the green light from your insurer, make the payment, but don’t forget to hold onto your receipts! All insurance companies will need proof of purchase before they agree to a payout, so keep hold of any evidence of the transaction, whether that is receipts, bank statements or any other documentation.

travel insurance and storms

We love a storm! There’s nothing like being safe and sound at home when the rain starts to fall and forks of lightning start to flicker on the horizon. But what about when storms get out of hand? Big storms can be bad news for anyone, but for travellers, they can be disastrous. A good storm makes for a great photo-opportunity, but when that storm grows in severity, your travel plans can be ruined as a result.

Where am I at risk of storms?

Storms can affect you virtually anywhere in the world. Whether it's a catastrophic cyclone in Fiji, torrential tornado in Toronto or horrendous hail storm in New York that shuts down road traffic or a snowstorm that freezes the tarmac and grounds flights, storms can have a devastating effect on international travel. 

How dangerous can a storm really be?

You should never underestimate the powerful impact of a storm. A storm can combine all the very worst weather conditions and wreak havoc on those unlucky enough to find themselves in its eye. The following weather conditions can prove incredibly dangerous and should be treated with utmost caution:

• Lightning: Lightning strikes are rare enough to be uncommon - but common enough to pose a threat. Each year 10 people die in Australia as a consequence of lightning strikes in addition to over 100 injuries. When lightning approaches, seek shelter and stay away from anything that might attract a strike.
   
• High winds: Getting blown away by a high wind is fairly unlikely, but getting struck by a falling object as a result of high winds is a significant risk. If you are caught in a storm, seek shelter as quickly as possible. If you are already inside, stay there and stay away from windows.
   
• Flash floods: When heavy rain meets an overworked urban drainage system or saturated high ground, all that water has to flow somewhere. Flash flooding can be destructive and dangerous to boot. When floods occur It's advisable to find shelter immediately and don’t be tempted to wade into this often filthy, disease-ridden water. Do you notice the pattern here? If a storm hits, stay inside!

Does travel insurance cover storms?

Travel cancellations, injuries, damaged belongings, spiralling costs; all of these can result from a particularly bad storm. This is why cover is crucial for your trip; you can't always predict which way the weather can turn.

There is a veritable deluge of things that you can claim for in the event of a storm, here are some examples:

Travel cancelled before you leave: If a major storm happens in your holiday destination before you leave, this is likely to put your travel plans on standby as flights to and from the destination may be affected by poor visibility. As long as you have kept all the paperwork relating to your travel plans and to your insurance policy, you should be able to claim. You must have purchased your cover BEFORE the storm!

Being stranded: While storms are usually predictable, they can also happen suddenly, which can cause a bit of a headache if you are mid-trip. If a storm has cancelled or grounded your flights, you may find costs beginning to spiral as you make alternative travel and accommodation arrangements. It is important to contact your insurance company as soon as you are affected whilst keeping a record of all correspondence and additional expenses you incur.

Personal injury or loss of belongings: If the worst happens and you get caught in the vicinity of an treacherous storm, keep a record of all medical treatment received and all belongings damaged or lost. Contact your insurance company immediately and keep a record of all communication.

What isn't covered?

• Choosing not to travel: Your insurance company will only pay out if your destination is classed as "uninhabitable" or your transportation is "significantly delayed". Simply deciding not to go because of bad weather does not give enough cause to claim.
   
• Claiming on known events: Once the storm is reported in the news, it becomes a known event. This means that any policy you purchase AFTER the storm has been widely reported will not cover you for any costs incurred. Insurers cut off dates will vary, so it's wise to pay close attention to these details.
   
• Ignoring travel warnings: If you do not heed travel warnings, particularly governmental travel warnings, you are effectively straying into a danger zone on your own accord. Insurance companies don't take kindly to this kind of recklessness, and your cover may be invalidated as a result.

How can I claim for a storm event?

If you get caught in a storm, or if a storm causes mass travel cancellations, you will want to claim back the costs incurred. Follow these tips to make this process as seamless as possible:

• Don't be a stranger: So a storm hits and your travel plans are cancelled, or maybe heavy winds have given you a nasty injury and relieved you of some of your personal belongings. What should you do? First things first; contact your insurer. In order for them to do their job they need to be kept informed of every little detail.
• Hoard, hoard, hoard: Paid for medical treatment? Get a receipt. Had to purchase a second flight? Keep the ticket. Your insurance company is going to want to see evidence of all those added expenses. Even if you’re used to being a light-travelling citizen of the world, be sure to gather any relevant proof required to make a claim. Doing so will only assist you in receiving the correct compensation.

• Read your policy documents: The best way to understand your cover and the claim process is to look at your Product Disclosure Statement.

Travel insurance and volcanoes

There are several reasons why Hollywood loves a volcano; they are big, loud, spectacularly scary and also very deadly, making them perfect for a starring role in an action movie. Unfortunately, it is for these same reasons that an erupting volcano can be a pretty dangerous beast.

On the other hand, volcanoes are easy to spot (they are huge, immovable mountains after all) and their temper tantrums are fairly easy to predict. That said, their eruptions still manage to catch people off guard now and again, and even a dormant volcano can pose some serious hazards of its own (take for example, the continuing Bali ash cloud). If you are planning on entering one of Planet Earth’s volcanic danger zones anytime soon, you'll need to take note of the current travel warnings and get yourself insured early. As well, you'll need to make sure that your insurance covers injury, travel cancellation or loss of property; don’t just assume it does!

Where do Volcanoes Occur?

Volcanoes occur at the edge of tectonic plates. These plates are always moving, causing a large amount of friction where two plates meet. Often, one plate is forced beneath the other in what is known as a subduction zone. This process creates enormous amounts of heat and pressure, melting the rock beneath the Earth's surface, which is then expelled via an eruption. The fault lines of the Pacific rim have created some of the world's most famous - and infamous - volcanoes, included those found on the west coast of South America and in Krakatoa in Indonesia.

Pleased note, the information in the map below is provided as a general guide only. Please refer to volcanodiscovery.com for up-to-date information.

Some of the World's most well-known Volcanoes

• Mount Ruapehu: This magnificent volcano is in fact the biggest single source of fatalities from natural disasters in New Zealand. Located on New Zealand's North Island, Ruapehu ranks among the world's most frequently erupting volcanoes. 
• Mount Erebus: Bet you didn't know that volcanoes exist on Antarctica. Mount Erebus is named after the Ancient Greek god of darkness. This bad boy has been in a state of eruption since 1972!
• Mount Pinatuba: This unassuming volcano made history as the second-largest volcanic eruption in history in 1991. Located in the Philippines, Pinatuba is still well and truly active, but eruptions seem to be slowing. 
• Mount Bandai: This active volcano was formed by a huge eruption in 1888. Bandai has inspired countless pieces of Japanese art and culture.

So it's all lava and fire, right?

Absolutely not! Volcanoes are like bumper-size picnic hampers full of just about everything Mother Nature can throw at you. Obviously it is the big, firework display pyrotechnics of volcanic eruptions that grab the headlines, but they account for only a fraction of the dangers posed by volcanoes. Ever heard of tephra? These nasty little things are pieces of volcanic rock and solidified clumps of ash that get blasted out of a volcano when it erupts. Add acid rain and pyroclastic flows (slow-moving lava flows that decimate everything in their path) to the mix and you’ve got yourself a recipe for extreme danger.

But it is the clouds of noxious gases and ash released by a volcano that are likely to cause you the most hassle. Recent eruptions in Bali and Iceland sent disruptive clouds drifting for hundred miles, grounding flights and delaying thousands of frustrated travellers.

But if the volcano is not erupting, I’m fine?

Does travel insurance cover volcanoes?

When are you not covered?

There may be some exclusions that apply to your cover. The following could invalidate a claim...

• Choosing not to travel: Your insurance company will only pay out if your destination is classed as "uninhabitable" or your transportation is "significantly delayed". Simply deciding not to go is not reason enough to claim.
   
• Claiming on known events: Once the eruption is reported in the news, it becomes a known event. This means that any policy you purchase AFTER the eruption has been widely reported will not cover you for any costs incurred.
   
• Ignoring travel warnings: If you do not heed travel warnings - particularly governmental travel warnings - you are effectively straying into a danger area of your own accord. Insurance companies don't take kindly to this kind of recklessness, and your cover may be invalidated.

Natural disaster travel insurance exclusions

Like every type of insurance there are conditions you need to pay attention to. In the majority of cases Australian travel insurance policies do cover you for unforeseen natural disasters that affect your holiday. However there are a few insurers where you need to pay attention to their conditions of cover as explained in the below.

Insure4Less: Cover for hurricane, storm or other natural disaster only when it threatens your safety such that official evacuation orders are issued or that your pre-booked accommodation is rendered uninhabitable.

InsureandGo: Medical cover due to any natural disaster is automatically covered however for cancellation you must purchase this option as an additional extra.

No Worries: Only covers for natural disasters in Australia.

Tick Travel Insurance: To include unexpected Natural Disaster as a claimable event, you must have purchased this option and the option must be shown on your Policy Schedule.
 

• Travel insurance purchase as an afterthought
  You wouldn’t be covered if you decided you needed to purchase after a travel warning had been issued. For example, if you heard about a hurricane warning in the mass media and only then did you decided to buy insurance, you couldn't cancel your holiday and claim for any out of pocket expenses.

• Intentionally putting yourself in harm’s way
  If you decide to visit a destination with a heightened travel warning and you were aware of the risks but decided to go anyway, it’s unlikely that you would be able to claim.

• Deciding not to go
  You are unlikely to be covered for wanting to cancel your trip ‘in response’ to a travel warning. For example, if a destination is known to be experiencing problems and a travel alert is heightened before your trip commences, you wouldn’t be covered for any claims relating to cancellation if you just decided not to go.

• General exclusions
  Most standard travel insurance policies have a set of general exclusions that apply to your cover. So regardless of when a travel warning is issued, and whether you took advice from the government or not, you may find you will not be insured for certain events. General exclusions that tend to be across the board include: Strikes, riots, civil protest and political instability, any act of war, terrorism, any event to do with nuclear or chemical weapons, contagious diseases and/or epidemics or pandemics.