Need to know
- Most travel insurers cover natural disaster
- If volcanic ash clouds prevent you from flying, your international travel insurance should cover you
- If you don't have travel insurance, you may still be able to reschedule your flight or get a refund on accommodation
Does travel insurance cover natural disaster?
Most travel insurers cover natural disaster as long as you bought the policy before it became a 'known event'. Cover will vary between policies.
All the policies in our international travel insurance comparison cover medical expenses in a natural disaster. But you're more likely to need cover for cancellation expenses, for example if you're unable to get to the airport due to bushfire, your flight is cancelled or delayed because of a volcano exploding in Indonesia, or you're stuck in transit.
Travel insurance may cover you for:
- Your medical expenses due to natural disaster
- Cancellation if the area where you are travelling is affected and your accommodation is closed, the area is unsafe, the government has closed roads or asked people not to travel or to leave.
- Travel delay if you can't get to your flight or transport, both internationally or domestically.
- Emergency expenses, for example if your trip is disrupted by volcanic ash cloud.
- An Accidental death while on your holiday.
- Accidental disability if injured while on your holiday.
There are several insurers that may not cover cancellation or other expenses in these situations, so make sure you check with your insurer.
When should you buy travel insurance for natural disaster?
To be covered for natural disasters, you need to buy travel insurance before the incident becomes a 'known event'. Insurance is intended to protect you against the unknown, so once an event becomes known, it's generally too late to buy insurance to cover you for that specific event.
When an event becomes 'known' is a grey area, but generally it's when it's publicised in the media or on official government websites. Check Smartraveller's advice to understand what's happening at your holiday destination.
Insurers' definitions can vary so it's best to check with your insurer on when they cut off cover for a specific event. If it's a major disaster, insurers will often publish specific advice on their website.
Will travel insurance cover the Mount Lewotobi Laki Laki volcano eruption?
Mount Lewotobi Laki Laki Volcano in Indonesia is affecting flights in and out of Denpasar. Some insurers stopped cover for claims arising as a result of this volcano in November 2024, while others cut off cover in June 2025.
Below is some of the insurer's advice. Check with your insurer to understand your cover.
- Travel insurers underwritten by Allianz, such as Worldcare, cut off cover for claims due to the volcanic ash cloud in November 2024
- Covermore travel insurance cut off cover for policies bought after 17 June 2025 at 7:35pm
- NIB travel insurance cut off cover for policies bought after 18 June 2025
- Go Insurance also cut off cover on 18 June 2025
- Southern Cross Travel insurance cut off cover as of 10am on 18 June 2025.
Pru Engel talks about the importance of Smartraveller advisories, their impact on travel insurance coverage, with different levels indicating varying degrees of risk and coverage.
What if you don't have travel insurance?
If you don't have travel insurance you might still be able to get a credit or refund from your travel providers, such as airlines and accommodation. In fact, even if you have travel insurance, your insurer will expect you to try to get a refund from the travel providers before they consider your claim.
Getting your money back on flights in a natural disaster
If the airline has cancelled or delayed flights due to a natural disaster, it's considered an event that is out of their control and the airline will have a policy providing compensation for cancellation or delay in this scenario. Familiarise yourself with the policy in case you need to remind the airline of their terms and conditions, because they won't necessarily volunteer it to you.
If you're unable to get to the airport due to a natural disaster then let your airline know. If you can get a real person on the phone that you can explain your situation to that will help, otherwise try their social media accounts. That will often get a response where other avenues don't.
Getting your money back on accommodation in a natural disaster
Contact your accommodation provider and ask if you can reschedule or get a refund. Natural disaster situations often have a big economic impact on tourist destinations, so flexibility on both sides of the equation can help the community, as well as ensuring you still get a holiday.
Getting your money back from third-party booking sites
Booking sites generally have their own terms and conditions and if you booked through them, you should deal with the booking site, not the end point service provider. The booking site should still be subject to Australian Consumer Law.
The sites usually have standard cancellation policies but in the event of natural disasters, they may make an exception. Airbnb, for example, may waive cancellation penalties in the event of a natural disaster. So familiarise yourself with the booking site's policy and quote it to them if necessary.
How do natural disasters in Australia affect your travel plans?
In Australia, your rights for accommodation bookings are covered by Australian Consumer Law and you have access to consumer guarantees, the same as for any other good or service.
In particular, in the event of a natural disaster, if authorities advise that the area you're planning to visit isn't safe to enter, both you and the accommodation provider may be released from the contract.
This makes cancellations without a fee possible through what's called a 'frustrated contract' under general law. A frustrated contract happens when it becomes impossible to carry out a contract due to events beyond the control of all parties involved.
If you paid by credit or Visa/Mastercard debit card, you also have a right to credit card chargeback if the accommodation provider hasn't provided the service.
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Stock images: Getty, unless otherwise stated.
