Navigate the Storm: Your Travel Insurance and Natural Disasters
Disruptions in holiday preparations due to a natural calamity
You're all set for your dream vacation, but Mother Nature has other plans. Whether it's a humongous ash cloud from a volcano or a forest on fire, natural disasters can disrupt your travel plans. But fear not, your travel insurance might have you covered.
Is travel insurance your lifesaver in a natural disaster?
Most travel insurers provide coverage for natural disasters, but it's crucial to remember that policies can differ drastically between providers.
Despite a disaster, your policy will likely cover medical expenses if you fall ill or get injured during the event. However, what you're more likely to need is coverage for travel-related cancellation expenses. For instance, if a volcano decides to blow in Indonesia or a bushfire grounds your flight, you might be able to get reimbursed for your lost vacation.
Natural disasters and travel insurance: What's included?
- Medical expenses caused by natural disasters
- Cancellation if the destination is affected and your accommodation is closed, the area is unsafe, government has closed roads or asked people not to travel or leave.
- Travel delay if you can't reach your flight or transportation, both internationally or domestically.
- Emergency expenses, such as dealing with a volcanic ash cloud.
- Accidental death during your trip.
- Accidental disability if you're injured during your vacation.
However, be aware that some insurers may not cover cancellation or other expenses in these situations. To avoid surprises, it's best to consult your insurance provider.
Timing is everything: When should you buy travel insurance for natural disasters?
To be eligible for coverage, you must purchase travel insurance before the incident becomes a 'known event.' Insurance is designed to protect you against the unknown, so once an event becomes known, it's generally too late to buy insurance for that specific event.
When an event becomes 'known' is a grey area, often determined by its being publicized in the media or on official government websites. Smartraveller's advice can help you understand what's happening at your destination.
Mount Lewotobi Laki Laki's fury: Uncharted territory for travel insurance coverage
The Mount Lewotobi Laki Laki volcano in Indonesia has been causing havoc with travel plans, affecting flights in and out of Denpasar. Some insurers stopped cover for related claims as early as November 2024, while others cut it off in June 2025.
- Allianz underwritten insurers, such as Worldcare, cut off coverage for claims due to the volcanic ash cloud in November 2024
- Covermore travel insurance stopped coverage for policies bought after 17 June 2025 at 7:35 pm
- NIB travel insurance stopped coverage for policies bought after 18 June 2025
- Go Insurance cut off coverage on 18 June 2025
- Southern Cross Travel insurance stopped coverage as of 10 am on 18 June 2025
Lost without insurance? All hope is not lost!
If you don't have travel insurance, you might still be able to get a refund or credit from travel providers, such as airlines and accommodation. Even if you have insurance, your insurer will often expect you to try to get a refund from the travel providers before they consider your claim.
Flight nightmares: What if your flight is canceled due to a natural disaster?
If an airline cancels or delays flights due to a natural disaster, it usually offers compensation for delays or cancellations. Familiarize yourself with the airline's policies, as they may not necessarily volunteer this information.
Hotel headaches: Getting a refund for accommodation in a natural disaster
Contact your hotel and inquire about rescheduling your reservation or receiving a refund. Many travel providers have flexibility during natural disaster situations, which can benefit both parties and ensure a vacation for you.
The booking conundrum: Dealing with third-party booking sites
Booking sites typically have their own terms and conditions. If you booked through a site, deal with the booking site first, not the service provider. Remember that the booking site is subject to Australian Consumer Law.
Booking sites usually have standard cancellation policies, but in natural disaster situations, they may make exceptions. For example, Airbnb may waive cancellation penalties in such cases. To facilitate matters, familiarize yourself with the booking site's policy.
Australian disasters and your travel plans: What are your rights?
In Australia, accommodation contracts are covered by Australian Consumer Law, offering consumer guarantees just like regular goods or services.
If local authorities advise against traveling to the destination, both you and the accommodation provider may be released from the contract, known as a 'frustrated contract.' This makes cancellations without a fee possible in certain situations.
If you paid by credit or Visa/Mastercard debit card, you also have the right to credit card chargeback if the accommodation provider fails to deliver the service.
We're on your side!
For over 60 years, we've been advocating for Australian consumers. We don't take ads or sponsorships, but rather are funded by members who value expert reviews and independent product testing.
With no self-interest dictating our advice, you can buy smarter, get unbiased answers, and feel confident you and your family are safe. Plus, you'll never be alone when something goes wrong or a business treats you unfairly.
Why let life's hiccups dim your travel dreams? Learn more about CHOICE membership today and set off on your journey with peace of mind!
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[43] Enrichment Data:
Overall:
Travel insurance coverage for natural disasters such as volcanic eruptions or bushfires varies by policy level and insurer, with specific terms and conditions that travelers must understand.
- In order to be covered for natural disasters, it's essential to buy travel insurance before the incident becomes a 'known event.' Insurance is meant to protect against the unknown, so once an event becomes known, it's generally too late to buy insurance for that specific event.
- Coverage can include travel delay and disruption costs, cancellation cover (under certain conditions), medical expenses, accidental death, and accidental disability. However, basic policies might not cover natural disasters without specific add-ons or higher-tier plans.
- Commonly excluded scenarios include known or anticipated events before insurance purchase, travel when authorities declare it safe, and standard travel policies not covering natural disasters as standard.
- Your choices are important when deciding on a travel insurance policy that offers comprehensive coverage for natural disasters.
- In the event of a natural disaster, such as a volcanic eruption or a bushfire, travel insurance can provide coverage for travel-related cancellation expenses, lost vacation, medical expenses, emergency expenses, and accidental death or disability.
