Policies include sections of cover outlining the situations and reasons you can make a claim and specifically what you can claim for. The general principle of insurance is to cover you for financial loss you suffer when the insured event happens. Each section of cover will also outline the limit of cover provided.
To leave insurance on the 'things to do' list, may be taking an unnecessary risk. Get travel insurance as soon as you’ve booked to get immediate cancellation protection. Thinking you don’t need to arrange cover yet as your holiday’s not for another six months may be a big mistake. In fact, it’s even more of a reason to arrange travel insurance, as anything can happen in that six months.
Cancellation will usually cover you if you're ill, on jury service, or if these issues affect those you’re travelling with. We can’t say it’ll cover every eventuality, but it will go a long way to making sure you don’t lose out.
If you purchase an annual policy, the cancellation cover starts as soon as the policy starts, not when you're travelling. With a single trip policy, it starts as soon as you purchase the policy, even though you give your travel dates to the insurer.