Travellers warned to check for terrorism cover

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Travellers warned to check for terrorism cover

Thu 11th Sep 2008

People buying travel insurance have been warned by Defaqto to check that they are covered in the event of a terrorist attack.

The finance data collection and research company analysed the market for annual and single travel insurance policies.

While most providers would probably pay a medical claim made as a result of a terror attack, they would not necessarily do so for personal accident and baggage claims.

Mike Powell, consultant for general insurance at Defaqto, said that of the 976 policies studied, just 63 per cent give protection in the event of a terrorist attack.

He warned that this leaves a "significant proportion" of people at risk of not buying satisfactory cover.

Another insurance warning was issued by the Fair Investment Company.

It found that more than a third of Britons do not have any home insurance cover, especially perilous given the increased risk of flooding.

Spokesperson Rachael Stiles said the finding came as "quite a surprise" and warned that home and building insurance should not be compromised in the wake of the credit crunch.

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