Your policy should pay out if you need to cancel or cut short a trip because, for example, you fall ill. It should cover pre-paid expenses, such as excursions, and any extra costs incurred in getting home. Check your policy documents to see what would be covered' accident, illness, pregnancy unknown when you buy the policy, jury service or witness summons, etc.

Cover may also be provided if you are needed at home because of fire, storm or flood, or if you are required by the police to come home following a burglary.

Some policies also cover cancellation arising from you being made redundant or if a strike or bad weather affects the departure of a flight or ship.

You need a policy with sufficient cover to refund the full cost of your holiday. Check your policy for details.