Wildfires Expose Travel Insurance Gaps

Many travel insurance policies will not automatically cover cancelled holidays due to wildfires unless official travel advice or supplier cancellations apply.

Travellers facing wildfire disruption are being warned that a cancelled holiday may not automatically be covered by travel insurance. The issue was highlighted on 2026-08-03 as wildfires increasingly affect holiday plans, especially in destinations where flights and hotels may still be operating despite smoke, heat or nearby evacuation alerts. The crucial detail is whether the trip has become officially impossible or unsafe under policy terms, rather than simply undesirable or worrying. For holidaymakers, the difference can mean either receiving a refund or losing hundreds or thousands of pounds.

Why Wildfire Cancellations Are Complicated

Travel insurance is designed around specific insured events, not every situation that makes a holiday difficult. Many policies will consider a claim only if there is an official trigger, such as government advice against travel, the closure of accommodation, a cancelled flight, evacuation orders, or a clearly defined natural catastrophe clause. If the airport remains open, the flight departs and the hotel says it can receive guests, an insurer may decide that cancelling is a personal choice. That can apply even when news footage looks alarming or when parts of the wider region are affected by wildfires.

Package Holidays Usually Offer Stronger Protection

Travellers on package holidays often have better protection than those who book every element separately. If unavoidable and extraordinary circumstances at the destination significantly affect the performance of the package, or the transport of passengers to the destination, the organiser may have to offer a refund or alternative arrangements. This is especially relevant where a resort is evacuated, accommodation is closed, or the holiday cannot be delivered as sold. However, if the operator says the trip can still go ahead and official advice has not changed, travellers may still face cancellation charges if they pull out early.

DIY Travellers Carry More Risk

Independent travellers who book flights, hotels, villas, car hire and tours separately need to deal with each supplier individually. An airline may owe you a refund or rerouting if it cancels your flight, but that does not automatically force a hotel or villa owner to refund a separate booking. Likewise, a refundable hotel does not help if your non-refundable flight still operates and you choose not to board. This is where travel insurance wording becomes critical, because it may be the only route to recovering costs that suppliers are not legally required to return.