Do I Need Travel Insurance For A UK Staycation Holiday?

Current UK restrictions mean that most holidays abroad – where travel is actually possible – come with testing requirements and possibly the obligation to quarantine for 10 days on your return.

However, optimism around the roll-out of coronavirus vaccines in the UK, plus a general yearning for a change of scene from our own four walls, means many Brits are still keen to take a holiday when they can.

Many people are looking at UK breaks this summer – possibly because they seem more likely to go ahead than international trips.

Staycation, Staycation, Staycation

It’s important to protect your money wherever you plan to go – in the UK as well as overseas. Here we take a look at what you need to know about staycations, from UK travel insurance and coronavirus protection to what’s still available.

UK trips may seem less of a risk at the moment with travellers being put off going abroad due to rules around 10-day hotel quarantine on return from certain countries, Covid testing requirements for travel, and memories of changing travel corridors last summer.

Do I need travel insurance for a UK holiday – and will it cover cancellation due to coronavirus?

According to Saga, less than half of travellers decide to take out travel insurance before a trip in the UK.

While staying closer to home may feel like a less risky option, especially with the safety net of the NHS for medical issues, travel insurance is still an essential as it can protect you should something go wrong, either before your trip or while you’re away, such as losing possessions or needing to cancel due to unforeseen circumstances.

Many UK travel insurance policies will now offer some level of protection around coronavirus disruption too, including cancellation cover should you, your travelling companions, a close relative or member of your household test positive for Covid-19 before a holiday (often within 14 days of travel), as well as curtailment cover (having to come home early).

You may also be covered for cancellation or curtailment in the event of a death of a close relative from Covid-19.

Your level of coronavirus cover will vary depending on the policy you choose, when you took it out and the company you take it out with, so always read terms and conditions carefully before committing.

For a successful claim, you may need to provide a medical certificate or test result to prove a diagnosis. Known events, such a positive result before taking the policy out, will usually be excluded, meaning you wouldn’t be able to claim.

What else can UK travel insurance cover?

Staycation travel insurance can also offer financial protection against a number of other potential problems, including:

• Cancellation or curtailment due to an unexpected event such as illness, redundancy or the death of a family member (non Covid-19 related)
• Baggage and belongings cover (this may also be covered by your home contents insurance)
• Transport delays
• Personal liability
• End supplier failure – this will pay out should one of the companies you booked with go into administration
• Hospital transfer – should you wish to be moved to a hospital closer to home
• Additional travel or accommodation should you be unable to get home due to illness.

All policies will offer different levels of cover and financial limits, so think about what is most important to you before comparing policies, looking carefully at the amount you can claim for each item and what the excess is (the excess is the amount that will be deducted from the value of any successful claim you make – so a £50 excess would see a £500 claim lead to a £450 pay-out).

What will UK travel insurance not cover?

In order that you don’t have any unexpected surprises should you need to make a claim, it’s important to read the exclusions on any policy you are considering, as well as what cover is included.

As an example, if you travel within the UK against government advice (should that change), your policy is likely to be invalid unless you have taken out specialist cover. This could include going away during a national or local lockdown.

The Post Office says: “Please remember that travelling during lockdown and certain tiers of restriction may invalidate your policy altogether.”

Many policies will also only cover UK trips over a certain length. Staysure says: “For your UK holiday to be covered, you must have pre-booked and paid for two or more consecutive nights away.”

Similarly, your trip may have to be a certain distance from your house to be covered (say, 25 miles) and you may need to be staying in paid-for accommodation.

“Where a business puts pressure on consumers not to follow government guidance this could be an unfair, and unlawful practice.” Find out more here.

Will my European or worldwide annual policy cover me for UK trips?

Many multi-trip European and worldwide travel insurance policies will cover UK trips as standard so, if you have one, check the terms and conditions before taking another out.

Check whether there are any specific exclusions or conditions (such as staying in paid accommodation a certain distance from your home address) relating to UK trips, though.

When should I take out UK travel insurance?

As with any travel insurance policy, the best time to take out UK travel insurance is as soon as you’ve booked your holiday so you’re covered for cancellation in the run up to your trip.

Other ways to protect your money when booking a staycation

As a belt-and-braces approach when booking a UK holiday, there are certain ways you can protect your money as well as taking out UK travel insurance. These include:

• Taking advantage of flexible booking policies that allow cancellation with a full refund or fee-free amendments should travel restrictions change. Some accommodation companies may also allow you to cancel without a charge up to 24 hours before your trip.
• Paying on a credit card will mean that you have financial protection under Section 75 of the Consumer Credit Act for purchases between £100 and £30,000. You could use this protection if your holiday company were to go into administration or your holiday was cancelled.
• If you can’t pay by credit card, you may have some protection paying by debit card under the Chargeback scheme.