Travel insurers are keen to tell you about the generous cover they offer, but to find out what your insurer might not cover you probably have to wade through your policy's Product Disclosure Statement.
If your belongings are lost or stolen you need a report from the local police. You need a receipt to prove ownership of any items you're claiming lost or damaged, and that Prada jacket bought eight years ago is no longer worth $1500. Rather than full replacement value, insurers apply depreciation. If you stow your bags out of sight on a train and they disappear, if you leave items on a table by the pool while you take a dip they're unattended and any claim for loss might be denied on the grounds that you did not take reasonable care.
Not all policies provide cover for lost or stolen phones, laptops, cameras and computers. Some do but apply a higher excess to those high-value items. If an 85-year-old parent falls sick and you need to return home in a hurry, that's not an unexpected event and you won't be compensated for any additional expenses.
You're supposed to take all steps to avoid a situation that could result in a claim. Fall down stairs and break a bone after one too many cherry vodkas and your insurer might say "tough break but you weren't sober so that's down to you".
Finally, purchase travel insurance as soon as you book your trip. If something unforseen happens before departure – a volcanic eruption that causes flight cancellations, a medical emergency – you should be covered for any interruption to your travel plans.
SAVINGS PLAN
Don't buy foreign currency at your departure airport, the rates are horrendous. Exchange at the currency booths at your destination and you'll get a better rate
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