We’ve all been there, stood at in the travel shop, purchasing our dream holiday tickets when we’re asked, do we want travel insurance. 9 times out of 10, we’ll just say yes. Holiday insurance appears to be so cheap as we’re only need it for a couple of weeks and it’s just nice to have, mainly for piece of mind. But what exactly does it cover and what are we agreeing to when we take out the policy?

If you asked most holidaymakers what their travel insurance covers after they’ve taken it out, they probably wouldn’t be able to tell you. It’s not explained to them, they just assume it covers anything and everything. Luckily, in most cases, it covers the basics such as health and lost/stolen items. But there are a number of things you should be aware of should you need to make a claim.

The main thing is the excess. As with any type of insurance, the excess is what you’ll need to pay out of your own pocket should you make a claim. The other thing to find out is specifically what your insurance covers. Does it cover stolen luggage, cash and exactly how much does it cover? Also, what is the policy if your cash or baggage is stolen as opposed to lost.

You may also want to find out the level of health cover you receive. All travel insurance premiums cover your health to some extent, but on some policies, you may need to pay for certain parts of it yourself. You should be sure you know exactly what is covered and what isn’t.