Travelling this summer? Here’s what your insurance may not cover

Goose Insurance co-founder Omar Kaywan says travellers heading to a ‘known’ area where there is war or terrorism will not be covered.

Canadians planning trips this summer may want to take a closer look at their travel insurance as the war in the Middle East and fuel-related disruptions reshape what is and isn’t covered.

Omar Kaywan, co-founder of Goose Insurance, says many travellers assume they are protected against cancellations or emergencies, but ongoing global events have created new limitations that could leave some out of pocket.

“Most insurance policies … don’t cover active war and terrorism, essentially, countries who are in active conflict,” Kaywan said in an interview with CTVNews.ca Wednesday.

That means Canadians travelling directly to regions experiencing conflict should not assume they are covered if something goes wrong.

However, the situation can be different if unrest begins after a trip has already started.

“If a war erupted in a safe country while you’re doing your travel, there is some coverage, obviously, because it was unexpected and it was unforeseen,” he said.

The war between the United States, Israel and Iran has had ripple effects beyond the region, particularly when it comes to flight disruptions linked to fuel supply issues.

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Kaywan said travellers hoping to rely on trip cancellation or interruption insurance for delays tied to fuel shortages may be disappointed.

“It’s considered a known fact right now, so most trip cancellation policies will not be able to cover you for this,” he said, noting insurers generally only cover unforeseen events.

“It’s essentially putting Canadians in a bit of a pickle,” he said, adding one of the most important steps before travelling is to check the federal government’s travel advisories, which insurers often use to determine eligibility for coverage.

“Paying attention to the advisory guidelines that have been provided by the government of Canada is the No. 1 thing,” Kaywan said.

Countries listed as “avoid all travel” are typically excluded from coverage, while those under “avoid non-essential travel” advisories may carry limitations, depending on the policy.

Kaywan said travellers should also carefully review policy wording and speak with a licensed agent before purchasing insurance, particularly if travelling to or through the Middle East.

Even brief stopovers can pose problems.

“Typically ... stopovers are not included in travel medical policies, because they’re still a war zone,” he said.

“So even if you’re staying there for a few hours, it’s not really recommended … You’re putting your safety at risk, and the insurance company” won’t be able to give you any coverage or repatriate you.