Storno (trip cancellation cover) is the most misunderstood member of the travel insurance family. It's not a “change of mind” policy, but a targeted tool: it pays out when you have to cancel a trip before departure for a documented reason named in the terms – and in that case it reimburses the paid, non-refundable costs. Let's look at how it works from start to finish.
- Storno cover reimburses the cancellation fee: the part that the provider (travel agency, accommodation, airline) doesn't refund on cancellation.
- It typically pays out for documented, verifiable reasons – illness with a specialist's medical report, accident, a close relative's serious condition, or an incident at home with an official report.
- It's timing-sensitive: it can typically be taken out at the time of booking or shortly after – not later, once trouble has already arisen.
What exactly does it reimburse?
Storno cover is about amounts paid at booking that aren't refunded on cancellation: a deposit, the full trip price according to the cancellation bands, typically reduced by a deductible (article on the deductible). The order matters: you must first cancel according to the provider's own cancellation terms – whatever you get back there isn't a loss; storno pays on the remainder. That's why you need to know the booking's cancellation bands, not just the insurance.
When to take it out – and why the rush?
Storno cover is typically tied to the booking: the terms allow you to take it out within a short window after booking (or after paying the deposit) – not later, precisely so that cover can't be taken out once trouble is already known about. The detailed timing rules are covered in the article on when to take out storno cover. If you travel on an annual policy, storno still needs to be arranged separately – the article on annual policy plus storno covers this.
What it pays for – and what it doesn't
Payment is always based on a reason named in the terms and its documentability: sudden serious illness with a specialist's medical report, accident, hospital treatment, a close relative's serious illness or death, a serious incident at home (fire, burglary) with an official report. What it typically doesn't pay for: simply losing the urge to go, a change in work schedule (unless the terms name it specifically), flight cancellation (that's the airline's compensation matter), or a general epidemic or war situation. The full, honest list is in the article on what storno pays for.
Where storno fits in the system
Storno covers the risk before the trip; a forced return home during the trip is the domain of trip interruption cover – together the two give a complete arc from booking to arriving home. For a high-value trip, storno protects the paid, non-refundable amount – up to the sum insured, and typically reduced by a deductible. If you have questions before taking out cover, let's talk it through.
Frequently asked questions on this topic
Can storno cover be taken out separately for a flight ticket?
Typically yes – cancellation cover also exists for a standalone ticket or accommodation. For a package trip, it's more practical to take out cover on the full trip price at once, so there's no gap between elements.
What happens if the travel agency cancels the trip?
That's the tour operator's contractual responsibility – a refund or an alternative trip is due under the contract and the applicable law. Storno cover is for cancellation on your side for a documented reason – the two situations shouldn't be confused.
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