Best Travel Insurance for Natural Disasters

Natural disasters (also known as natural hazards) refer to large-scale extreme weather or natural phenomena events that cause property damage and loss of life, including Earthquake , tsunamis, floods, fires, snowstorms, storms, and volcanic eruptions. For travel insurance , if the insured person’s destination experiences a natural disaster as specified in the policy, leading to trip cancellation, delay, or early termination, the policy may provide compensation according to the terms.

Please note that each insurance company may have a different definition of natural disasters, which can affect the success of a claim!

If a natural disaster occurs at the destination within the specified number of days before departure (as stated in the policy), forcing the trip to be canceled, most travel insurance will provide coverage for non-refundable expenses such as flights, train tickets, hotel stays, and attraction/activity tickets.

Earlier, the Bowtie team conducted a comparison , and popular travel insurance products on the market have coverage limits for “trip cancellation” ranging from $30,000 to $50,000.

If the insured person’s trip is delayed due to a natural disaster at the destination affecting scheduled public transportation, and the delay meets the hours specified in the policy (generally 5 to 6 hours), the insured person can receive cash compensation or allowances. Additionally, reasonable extra travel expenses incurred due to the delay, such as hotel stays and flights, can also be compensated.

Earlier, the Bowtie team conducted a comparison , and popular travel insurance products on the market offer cash compensation for “trip delay” ranging from $1,500 to $3,600; while the coverage for extra transportation and accommodation expenses due to “trip delay” ranges from $1,500 to $13,000.

If a natural disaster at the trip destination forces the scheduled itinerary to end early and return directly to Hong Kong, most travel insurance will compensate for non-refundable expenses such as flights, train tickets, hotel stays, and attraction/activity tickets, as well as additional expenses for flights and hotel stays.

Earlier, the Bowtie team conducted a comparison , and popular travel insurance products on the market have coverage limits for “early trip ending” ranging from $40,000 to $50,000.

Although travel insurance covers situations like ‘trip cancellation’, ‘trip delay’, and ‘trip early termination’, there are exceptions. If the destination’s natural disaster has already occurred before you purchase the policy , or has been widely reported by the media before purchasing , or the Hong Kong government has issued a travel warning for the natural disaster , the insurance company will classify it as an ‘existing situation’ , and travel insurance generally won’t provide any compensation for these ‘known risks’ (including medical and death benefits) .

For example, the Japan Meteorological Agency issued a Temporary Information on Earthquake for Travel Insurance (Major Earthquake Alert) on August 8, 2024, warning of a high likelihood of a large-scale earthquake within a week, with an expected death toll exceeding 200,000, and the disaster potentially affecting popular tourist cities like Osaka and Nagoya. Whether your trip cancellation due to this warning is covered depends on when you purchased the insurance.

If you purchased the policy before August 8—that is, before the warning was issued—then ‘trip cancellation’, ‘trip delay’, and ‘trip early termination’ would still be covered. However, if you bought it after August 8, once the warning was out, these situations wouldn’t be covered because the earthquake risk would already be considered a ‘known risk’ by the insurance company, making it an excluded item.

Of course, different travel insurance policies have varying definitions of ‘natural disaster’, ‘known risks’, and ‘existing situations’, so always review the relevant coverage terms and exclusions before purchasing. If any clauses are unclear, be sure to ask the insurance company for clarification.

In the following scenarios, can the insured claim compensation for the natural disaster?

As long as it doesn’t involve the above “known risks” and “pre-existing conditions,” travel insurance can still provide medical coverage and death benefits for the insured. However, as a comprehensive insurance product, travel insurance offers property, medical, and life coverage, but its medical limits are relatively low (some compensation caps are only around a hundred thousand dollars or so); plus, some plans don’t include death benefits at all. That’s why we strongly recommend that travelers also get voluntary health insurance and term life insurance to bolster their protection.

For medical insurance, you can opt for plans with deductible options (which pair nicely with travel insurance’s medical coverage) and full reimbursement through a premium voluntary health insurance like Bowtie Pink . This plan also offers 24-hour global emergency support services , making it a great fit for travel risks. As for term life insurance, consider Bowtie Term Life —it’s pure life coverage without any savings elements, offering excellent value for money.

Of course, even with medical and life insurance in place, always put your personal safety first—keep an eye on natural disaster alerts and the latest news to decide if you should cancel or cut your trip short.

Even if your situation is still covered by travel insurance when affected by a natural disaster, there are some key things to keep in mind when submitting a claim:

• Make a claim within the deadline: Claims generally must be submitted within a month (usually 21-31 days), so remember to prepare the relevant documents and apply before the deadline—or the insurance company might reject it if it’s late.
• Taxes and surcharges are not covered: While reasonable extra hotel or flight expenses from trip delays or early terminations are covered, taxes and fuel surcharges fall outside the protection scope.
• News cannot serve as proof of a natural disaster: Even though natural disaster news is often widely reported, web pages, screenshots, or clippings from news sources won’t count as valid proof. As a policyholder, you should download the official disaster report from local government or agencies.
• Prepare the documents needed for your claim: Including the natural disaster report issued by local authorities and flight delay certificates from airlines; for trip changes due to natural disasters, you’ll need proof of communication about non-refunds from booking websites or travel agencies, plus receipts for additional transportation costs and accommodation.