Travellers worried about swine flu are being urged to check their insurance policies to see if they are covered for cancelling trips to areas most affected by the outbreak, such as Mexico.
Most policies will refund the cancellations of travel arrangements to a destination if the Foreign and Commonwealth Office (FCO) has advised against all but essential travel to the area - which was the case this week with Mexico.
But insurers said this wasn't the case with allpolicies.
"Where the FCO has advised against all but essential travel, most policyholders will be able to claim a refund or an alternative trip from their tour operator or travel agent," said the British Insurance Brokers Association (Biba).
"This would be the correct procedure for travellers to follow before submitting an insurance claim."
However, Biba added: "Not all travel insurance policies will cover cancellation due to a pandemic or FCO advice against travel. Travellers are advised to contact their insurance broker or travel insurance provider for clarification."
Biba explained that if tour operators or travel agents arrange an alternative destination, the existing travel insurance policy should normally cover the new destination instead, but travellers should check this with their insurance broker.
Travellers who are concerned about swine flu but delay taking out cover could find themselves unable to obtain insurance.
"We would only cover people with policies taken out and trips booked before the FCO issues advice," said Emma Holyer, of LV=, the insurer. "If someone has booked a trip to Mexico after the FCO has issued advice (i.e. in the last 24 hours) they would not be covered.
"It's always best to take out insurance at the time of booking a trip or have an annual policy in place to avoid this kind of problem."
A warning was also given to those with existing insurance policies who insist on travelling to areas against official advice, with providers unlikely to cover any costs if the traveller falls ill.
However, while swine flu cases have been confirmed in the UK, US, Spain and Canada, travellers cannot expect a refund if they simply wanted to be cautious and not travel.
"Any cautious Brits cancelling their holidays to these areas for this reason are unlikely to be covered by their insurer or compensated by the airline or travel firm they have booked with," said moneysupermarket.com, the price comparison website.
"But those paying for their holiday, or flight, with a credit card, provided it is over £100, get the added benefit of cover from the credit card company which becomes equally liable for providing a refund if the holiday cannot be fulfilled due to a cancellation by the holiday operator or airline."
Meanwhile, those who have package holidays booked to Mexico departing in the near future are being advised that tour operators will decide how far in advance they are prepared to offer refunds or alternatives.
"The exact period will vary as the advice from the FCO can change rapidly," said the Travel Association, which represents British tour operators and travel agencies.
"If your departure date is some weeks or months ahead, therefore, your tour operator will keep the matter under review and contact you closer to your departure date if it's necessary to change your holiday," it added. "If you're concerned, please contact your tour operator."
With ongoing uncertainty over the extent of the outbreak likely to lead to more cancellations, some companies are offering to alleviate the disappointments of some holidaymakers.
M&S travel money customers can take their unused Mexican pesos or US dollars into any of the 116 M&S bureaux de change until close of business on Friday May 8 and exchange them for thesterling amount they paid for the currency.
For more advice see: FCO www.fco.gov.uk; The Travel Association www.abta.com; World Health Organisation www.who.int
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