Best travel insurance policies for places prone to natural disasters (2024)

Best travel insurance policies for places prone to natural disasters (2024)
PHOTO: Unsplash

When it comes to natural disasters, Singapore is a sheltered island. How sheltered? Based on data from 2023, we have the 4th lowest disaster risk in the world. So on this island refuge, it can be easy for us to feel detached from earthquakes, tsunamis and cyclones.

But it's a different reality for many of our Asian neighbours. For example, China lies where the Eurasian, Pacific, and Indian Ocean plates meet-a region with high tectonic activity.

Between 1990 to 2024, Statista reports that China recorded 186 earthquakes, the highest number in the world. According to the Global Facility for Disaster Reduction and Recovery, the earthquakes that hit China account for one third of destructive continental earthquakes globally. Yikes.

PHOTO: Statista

If you're travelling to earthquake-prone places like China, Japan or Bali, you want to make sure your travel insurance policy covers you in the event that your trip gets affected by natural disasters. Here's what you need to know.

1. Best travel insurance for natural disasters

You won't see a separate category for natural disaster coverage in travel insurance policies. Instead, insurers count natural disasters as one of several factors that may cause a trip cancellation, postponement, delay, or curtailment.

Let's assume you're going on a week-long trip to an Asean country. Here's a summary of the non-discounted costs and coverage of different travel insurance policies for trip disruptions and inconveniences due to national disasters.

Travel Insurance Maximum coverage due to events such as natural disasters  Premiums (ASEAN)
Citibank travel insurance (provided by DirectAsia—see policy wording)
  • $15,000 for travel cancellation
  • $10,000 – $15,000 for trip curtailment or cancellation
$32 – $60/week
FWD travel insurance
  • $300 to $1,000 for travel delay
  • $7,500 to $15,000 for travel cancellation
  • $500 to $1,500 for travel postponement
  • $5,000 to $15,000 for trip curtailment
$33 – $57/week
Tiq by Etiqa travel insurance
  • $300 to $500 for travel delay
  • $5,000 to $10,000 for travel cancellation
  • $500 to $1,000 for travel postponement
  • $3,000 to $5,000 for trip curtailment
$39 – $72/week
AMEX Travel Insurance (AMEX My Travel Insurance)
  • $800 to $2,400 for travel delay
  • $5,000 to $20,000 for travel cancellation
  • $500 to $2,000 for travel postponement
  • $5,000 to $20,000 for trip curtailment
$40 – $63/week
Singlife Travel Insurance
  • $500 to $2,000 for travel delay
  • $5,000 to $20,000 for travel cancellation
  • $1,000 to $3,000 for travel postponement
  • $3,000 to $15,000 for trip curtailment
$41 – $88/week
Bubblegum travel insurance
  • $400 for travel delay
  • $5,000 for travel cancellation
  • $5,000 for trip curtailment
$43/week
AIG travel insurance
  • $1,000 to $3,000 for travel delay
  • $5,000 to $15,000 for travel cancellation
  • $500 to $2,000 for travel postponement
  • $5,000 to $15,000 for trip curtailment
$48 – $125/week
Sompo Travel Insurance
  • $800 to $1,200 for travel delay
  • $5,000 to $10,000 for travel cancellation
  • $5,000 to $10,000 for travel postponement
  • $5,000 to $10,000 for trip curtailment
$64 – $83/week
MSIG travel insurance
  • $500 to $1,500 for travel delay/flight diversion
  • $5,000 to $15,000 for travel cancellation
  • $750 to $2,000 for travel postponement
  • $5,000 to $15,000 for trip curtailment
$67 – $125/week
Income travel insurance
  • $1,000 to $2,000 for travel delay
  • $5,000 to $15,000 for travel cancellation
  • $500 to $3,000 for travel postponement
  • $5,000 to $15,000 for trip curtailment
$68 – $109/week
DBS TravellerShield Plus Travel Insurance
  • $1,200 to $2,000 for travel delay
  • $5,000 to $15,000 for travel cancellation
  • $750 to $2,000 for travel postponement
  • $5,000 to $15,000 for trip curtailment
$75 – $122/week
Tokio Marine travel insurance (TM Xplora Plus)
  • $100 to $1,200 for travel delay
  • $5,000 to $10,000 for travel cancellation
  • $5,000 to $10,000 for travel postponement
  • $7,500 to $15,000 for trip curtailment
$78 – $101/week
AIA Travel Insurance (AIA Around The World Plus (II))
  • $1,000 for travel delay
  • $5,000 to $15,000 for travel cancellation
  • $500 to $2,000 for travel postponement
  • $5,000 to $10,000 for trip curtailment
Enquire with an AIA Appointed Representative

2. How do I choose the best travel insurance for an area prone to natural disasters?

Before you buy your travel insurance, you need to do research on the following:

  1. What kinds of natural disasters that area is prone to
  2. How your travel insurance policy defines natural disasters  

The first question to ask is what kinds of natural disasters the place you're visiting is prone to, if any. For example, is the area near an active volcano that might lead to a volcanic eruption? Does it sit on the Pacific Ring of Fire, where 90 per cent of the world's earthquakes take place?

At this point, also look out for disaster warning announcements — if you're forewarned that a natural disaster may occur but still go on the trip, you won't be able to make insurance claims.

Additionally, don't forget about natural disasters that you don't hear about as often, such as hail, ice storms, landslides, heat waves, and wildfires. These are important to consider because not everyone may consider them natural disasters — including your insurers.

Once you know what natural disasters your destination area is prone to, check if your travel insurance policy defines them as natural disasters. Some insurers may limit their claims to trip disruptions due to specific disasters such as typhoons, earthquakes and tsunamis. If you have to cancel your trip due to a heat wave but your insurance policy doesn't consider that a natural disaster, your claims won't be approved.

For example, here’s how "natural disaster" is defined by AIG travel insurance:

AIG's definition of natural disasters and extreme weather conditions as per their travel insurance policy on page 36.
PHOTO: MoneySmart

Comparatively, MSIG travel insurance listed fewer types of natural disasters as examples and described natural disasters as natural events with catastrophic effects:

Definition of natural disasters according to MSIG travel insurance policy wording (page 13).
PHOTO: MoneySmart

A good rule of thumb is to choose a travel insurance policy with a broad definition of natural disaster. Don’t assume this is always the case, especially if you’re buying travel insurance from an airline.

3. What are some things that travel insurers might exclude?

Travel insurers generally define natural disasters as any event or force of nature which has catastrophic consequences on the environment, finances or human life.

Most types of natural disasters such as earthquakes, volcanic eruptions, floods, typhoons, tsunamis, hurricanes and so on can fall under this category if they are serious enough. If you feel light tremors causing no damage, you're unlikely to be able to make a claim.

Do note, however, that many insurers have exclusions on nuclear risks and exposure to nuclear radiation, even if this was caused by a natural disaster. For example, the Tohoku earthquake in 2011 caused the meltdown of three nuclear reactors, leading to the Fukushima nuclear disaster. Insurance would cover you for the earthquake, but may not cover you for the nuclear disaster.

The most important thing to note is that most insurers will not cover you if you already knew about the natural disaster risk in the area, but decided to book the trip or buy the travel insurance policy anyway. Insurers will usually include such announcements as travel advisories or warnings, such as this one from FWD:

Travel advisory from FWD as of May 13, 2024.
PHOTO: MoneySmart

So let’s say you have already read in the news that a volcano is about to erupt in a certain destination, and you go ahead and book a trip there anyway. If you end up having to cancel your trip because the volcano erupted, you are unlikely to get reimbursed for your travel expenses.

4. How do I make a travel insurance claim if a natural disaster strikes?

Recall that insurance policies don't have a claim category for natural disasters. Instead, you'll usually have to make a claim under one of the following: 

  • Travel cancellation: You are unable to depart for your trip due to unavoidable, unforeseen circumstances.
  • Travel postponement: You already booked your trip, but are forced to change your travel dates and book another ticket for a later date.
  • Travel delay: You end up departing for your trip at a later time than scheduled, e.g. due to a delayed flight. Insurers stipulate the exact number of hours that count as a delay — usually six hours. Note: Don’t mix travel (i.e. flight) delay up with baggage delay!
  • Trip curtailment/shortening: You are already on your trip, and have to cut it short due to an unexpected event that happened during the trip.

Pro tip: You don't have to pore through each travel insurance policy wording to find out these claim limits! View them easily on our MoneySmart travel insurance comparison page.

What kinds of expenses can be claimed under the categories above? Typically, a travel insurance policy should pay for additional travel and accommodation expenses incurred should your trip be disrupted due to a natural disaster in the country you're in or travelling to.

If a natural disaster does occur while you’re travelling (choy!), contact your insurer as soon as possible, and preferably before incurring additional expenses like hotel bookings. They will advise you on the documentation you need to provide in order to make a claim, which might include receipts or police reports.

Finally, this has nothing to do with insurance, but it’s a good idea to call the Singapore Embassy in the country you’re in and ask for emergency contacts in case you need urgent consular assistance. You should also eRegister your overseas travel with the MFA so they can search for you if you go missing in any natural disaster (choy!).

5. Is it safe to travel to areas prone to natural disasters?

As we mentioned earlier, your insurance claims won't be approved if you were forewarned about a natural disaster risk but chose to go on your trip anyway. So in this case, if you haven't booked your tickets yet, you probably shouldn't. But what if you've already booked your flight? Is it safe to go on your trip? Will you be refunded if flights are cancelled?

That was exactly what happened in October 2017, when it was announced that Mt. Agung in Bali was expected to erupt for over a month. After the last eruption in 1963 killed over 1,100 people, everyone in 2017 who booked a ticket to Bali was left wondering: Will I get killed if Mt. Agung erupts again? Should I still travel to Bali? If so, what can I do to protect my safety?

If a disaster warning surfaces after you've booked your tickets, here's what you need to know:, 

  • It’s generally safe to travel to another area in that country far from the disaster threat. In the case of Mt Agung,  there are tourist spots in Bali far away enough to not be affected by the volcano. So if you don’t have plans to travel anywhere near the Bali volcano, you can still go ahead with your travel plans. Furthermore, the authorities will clear out people in the danger zone, and will put up red alert exclusion zones where the lava and ash may potentially reach. So, if you’re ever stumbling too near the danger zone, you’ll definitely know.
  • Flights will be cancelled and rescheduled by your airline. If the situation gets bad, your airline will cancel their flights to destinations near where the natural disaster is expected to occur. Flights booked that are deemed unsafe to proceed  will likely be rescheduled without any additional fees. Of course, this is subjected to availability and fare differences. Alternatively, some airlines may also allow refunds.
  • Airports will be closed if the natural disaster occurs nearby. In the case of Mt. Agung in Bali, the volcano erupted on Nov 26, 2017, leading to the closure of the Ngurah Rai International Airport because of the ash cloud. While ideally you’d be ferried to other airports in neighbouring islands to take your flight out, there’s also the chance that a widespread eruption might affect road travel and neighbouring airports too. If the eruption warning came when you were already in Bali, your insurance will cover your expenses while you’re stranded.

ALSO READ: How to pick the best travel insurance plan

This article was first published in MoneySmart.

homepage

trending

trending
    'Fate is unstoppable': Michelle Chia weds real estate agent boyfriend in whirlwind marriage
    'Proof of love between 2 nations': Malaysian man creates SG60 shirt to thank Singaporeans who helped him through hard times
    PM Wong to deliver National Day Rally speech on Aug 17
    Man remanded after wielding knife, trying to snatch baby in Penang supermarket
    'I felt I would die if I closed my eyes': Ada Choi's husband Max Zhang recall suffering heart attack in April
    Government looking at lowering HDB flat eligibility age for singles, raising income ceiling for couples, families: Chee Hong Tat
    Jet Li's eldest daughter getting married
    More than 53,000 retail workers to see wage increase of at least $130 from Sept 1
    Hyflux issued preference shares to fund Tuaspring as it had problems getting bank loans: Prosecution
    Man suffers swollen ankle after PMA 'operating at high speed' hits him along Ang Mo Kio walkway
    Chinese navy and coast guard vessels collide while pursuing Philippine patrol boat in South China Sea
    Cigarette to blame? Tree in Jurong catches fire after exterminators reportedly remove beehive

Singapore

Singapore
    • Vers likely to be launched in next decade: Chee Hong Tat
    • 'A worrying trend': Speeding violations surge 45% in first half of 2025 compared to same period in 2024
    • 4 foreigners arrested after Rail Corridor search suspected to be part of housebreaking syndicate
    • NDP 2025: Crowds gather at Marina Bay as celebrations extend beyond Padang for the first time
    • Criminal trial of Hyflux founder Olivia Lum and 5 others starts on Aug 11
    • Families of Red Lions show support at Bishan NDP @ Heartlands celebration despite gloomy skies
    • Man, 49, arrested in Toa Payoh for causing hurt; penknife seized by police
    • One Fort resident says daily pickleball games are 'driving us crazy': Town council to display advisory signs
    • NDP 2025: More than 27,000 people throng Padang as festivities kick off
    • Malaysia's border control agency gives ICA cake to mark SG60

Entertainment

Entertainment
    • 'My sweat seeped through the seams': Zhang Zetong on 'suffering' and working with new virtual technology for drama Perfectly Imperfect
    • Romeo Tan learns to 'hold space for others' after new drama
    • 'More like a trip with friends': Cast of K-drama Love, Take Two recall bonding in the countryside during filming
    • 'Small gestures speak the loudest': Director M. Raihan Halim focuses on familial love in SG60 film Kopitiam Days
    • Tom Holland admits putting on his Spider-Man suit 'feels different this time'
    • Katy Perry shows off bruises and scrapes from her Lifetimes tour
    • Pixie Lott plays her 'last gig', due to deliver second child in early September
    • Celeb pawrents: Actress Sharon Au’s cat Rudon has a French passport
    • Jessie J to undergo another surgery amid breast cancer recovery
    • Kelly Clarkson's ex-husband dies aged 48 from cancer

Lifestyle

Lifestyle
    • Singapore ranks top in Asia for work-life balance and 25th in the world, according to Remote study
    • Embracing Singlish as part of our identity: Paiseh for what?
    • One-Michelin-starred Restaurant Euphoria shutters, chef-owner looks to 'rethink the future' of his cuisine
    • I try 11 new Michelin Bib Gourmand 2025 eateries to see if they're worth the hype, here's my honest take
    • BYD Atto 2 electric compact SUV launched in Singapore
    • I've lived in Twin Vew for 4 years: What's it like living without an MRT station nearby
    • Even cheaper than Bali: 5 hidden Asian islands you (and your wallet) will love
    • 4 condo layouts and features buyers are moving away from in 2025
    • How to get your driving licence in Singapore - fast
    • 'Last' meals: How durian, chilli crab, and KFC bring comfort to the dying in Singapore

Digicult

Digicult
    • Slim, sleek, but slightly too short-lived: Samsung Galaxy S25 Edge review
    • World's best Dota 2 teams to compete for $1m prize pool in Singapore in November
    • Apple Maps brings 3D landmarks and road-level realism to Singapore
    • The best AI tutor for O-level subjects: ChatGPT, Gemini or The Wise Otter?
    • Vivo X Fold5: A foldable contender with a few class-leading surprises
    • Here's everything in GPT-5 that's new and different than OpenAI's previous AI models
    • Australia regulator says YouTube, others 'turning a blind eye' to child abuse material
    • ZipZap car subscription service launches in Singapore
    • Sony RX1R III brings back the compact full-frame but not the Sony playbook
    • China's Premier Li proposes global AI co-operation organisation

Money

Money
    • Up 4.3%: Singapore's economy grew in Q2 despite US tariff fears
    • Keppel to sell M1 unit's telco business to Simba for $1.43b
    • Over 70% of Ang Mo Kio's 4-room million-dollar resales in the past 3 years came from this project
    • DBS beats expectations with $2.82b net profit for second quarter, maintains 2025 outlook
    • Carro targets US IPO with over $3.8b valuation, sources say
    • US companies spending record amounts to protect executives as threats rise
    • Electric car-sharing firm BlueSG to wind down current operations on Aug 8
    • Singapore's most expensive neighbourhoods are changing - 4 buyer trends that prove it in 2025
    • Should you buy a used car in Singapore? Pros, pitfalls and price comparisons
    • Why I bought 7 properties in Johor Bahru, and will still buy more

Latest

Latest
  • Daily roundup: Ada Choi's husband Max Zhang recall suffering heart attack in April — and other top stories today
  • Taiwan is continuing tariff negotiations with US, cabinet official says
  • Scientists find possible artefacts of oldest known Wallacean hominids in Indonesia
  • Bangladesh dengue deaths top 100, August could be worse
  • New Zealand considering recognition of Palestinian state, foreign minister says
  • Russia says it continued development of nuclear missiles during moratorium on deployment
  • Trump vows to evict homeless from Washington, official says National Guard may be deployed
  • Fistful of dollars and rice for Vietnam farmers displaced for $1.9b Trump golf club
  • South Korea, Vietnam leaders to pledge deeper ties amid trade challenges

In Case You Missed It

In Case You Missed It
  • Tourist in Hong Kong killed after cabby, 80, crashes into pillar outside hotel
  • 2 Malaysian men nabbed at Woodlands Checkpoint for allegedly smuggling drugs worth over $150k into Singapore
  • Parents reject $30k settlement from kindergarten in JB after son suffocates to death in school van
  • Pritam gets candid with kids’ questions on his worst subjects and favourite song in radio interview
  • Bro-code before go-mode: Meet the duo leading NDP 2025
  • LTA, Singapore bus operators reviewing Malaysia’s request to start services from JB at 4am
  • Part-time PHV driver who stopped suicide attempt among 38 recipients of MHA’s public spiritedness award
  • Australian man, 82, arrested for alleged March thefts at Changi Airport upon return to Singapore  
  • JB car wash operators say 'unfair' after business declines amid govt clampdown over prioritising Singapore-registered cars
This website is best viewed using the latest versions of web browsers.