What cover do you need?

Nobody wants to find themselves in need of insurance in a foreign country. All policies have limits and exclusions. You need to know what is, and more importanly, what is not covered by your policy before you travel.

Basic policy requirements:

• 24 hour emergency helpline and legal expenses cover. Make a note of this number in different places so you can find it easily if you need to.

• Medical cover insurance for a minimum 1 million pounds in Europe and 2 million pounds in the USA and rest of the world. This may seem a huge figure, but it does cover the cost of an air ambulance should it be necessary.

• 1500 pounds minimum cover for your personal possessions and baggage. Most policies have a single item limit. Check this figure on your policy covers for example, the cost of replacing an expensive camera or watch.

• 3,000 pounds minimum “cancellation or curtailment “ cover. This covers you if, for example, you have to cut short your holiday to return home due to a family emergency. You could also claim back the cost of any prepaid trips booked.

• At least 1 million pounds of personal liability cover in case you injure somebody or damage their property.

• Your insurer should be a member of The Financial Ombudsman Service. They are an impartial organisation who can help you to settle claims and get compensation. Their services are free and can be invaluable in case where you may have a dispute with an insurer.

Hints and tips for buying your policy:

• Always, always tell the insurer about any pre-existing medical conditions – failure to do so may result in your policy being invalidated.

• Read the details carefully and ask as many questions as you need to to understand exactly what your policy covers.

• Check cover exclusions and limits. For example, do you need cover for sporting activites? Check the details.

• And remember. Check the excesses on the policy.

• Check your household contents policy (personal possessions or all risks section) Your possessions may be covered when you are away from home. Taking baggage cover off your travel policy can save you money on your premium.

• European travel perk – get an EHIC (replaced the E 111 form in 2006). Pick up a form at the Post Office, complete and send it off. Many insurers will waive up fees of between 50 to 100 pounds for excess on policies. This card is only valid in Europe.

• Check with your credit card company and your bank – certain types of accounts carry comprehensive travel insurance as a benefit. Ring and check or call in a your branch – you could save money. Don't rely on travel accident insurance offered by any credit card – this has only a very limited amount of medical cover and is generally insufficient for your needs.

• Buy your policy from an Insurance company, not a travel agent. A Which survey carried out in 2006 said travel agents policies are generally more expensive and may not provide the correct cover for your needs. At the moment, travel agents are not covered by financial regulations if insurance is sold as part of a package deal, so cannot be covered by the Financial Ombudsman service – if things go wrong, you may have very little recourse.