In February, when Lottie Cornwall booked a summer trip to Lebanon, she was excited at the prospect of introducing her boyfriend to her Lebanese extended family.

“My mum’s whole side of the family live there,” she says. “I last saw my grandmother and cousins in 2022. My heritage means everything to me, and this was a chance for my boyfriend to meet my family, and to show him where I come from and why I’m so in love with it.”

But, like many other Britons, the 21-year-old’s plans have been derailed by the Iran war.

In March, the Foreign Office changed its advice, warning against travel to parts of Lebanon. When she dug out her “comprehensive” travel insurance policy, she discovered it excluded “any claim due to changes in travel advice”.

The Nottingham Trent University student, who works part-time as a waitress, bought the flights and insurance via the online travel agency Trip.com. The company contacted AJet on her behalf but the airline, part of Turkish Airlines, said the usual rules applied, with fees to cancel or change the return trip via Istanbul totalling £673. The original booking cost £782.

“The Foreign, Commonwealth and Development Office (FCDO) is warning British nationals not to travel to Lebanon, and my insurer says my policy is void if I do travel,” Cornwall told us. “This exclusion is not made clear at point of sale. I believe consumers are being misled into purchasing premium policies.

“I assumed if your government is telling you not to go somewhere, the airline would give you a credit or change the booking. We will not make the trip if the advice stays the same and will lose the money.”

Her predicament highlights the need to check insurance policy details carefully so that you don’t get caught out.

Travelling against advice

Some policies would cover some of the costs resulting from a travel advice change. The trade body the Association of British Insurers (ABI) warns that travelling against FCDO advice could invalidate your travel insurance.

However, if you need to travel, such as for a family bereavement, it is possible to get specialist cover – but this has to be arranged before you go.

At the moment there are fewer policies available for destinations affected directly or indirectly by the Middle East conflict. This includes the United Arab Emirates and Cyprus, where some insurers have paused quoting, according to the analysts Defaqto.

The Defaqto director Stephen Kennedy says: “Travellers should treat insurance as something to check before they book, not after. Availability can change quickly when a destination is affected by conflict, airspace closures or FCDO advice, and some insurers may pause quoting while they reassess the risk.

“Most standard travel policies are not designed to cover losses arising directly from war or armed conflict. That means travellers should not assume they can cancel because they are worried about travelling, or claim for disruption linked to the conflict, unless their policy clearly says so.”

If you are looking for a policy, you will probably find less choice, more exclusions and greater scrutiny around the destination and official travel advice. It might cost a bit more, too. The average premium for a trip to Turkey costs 12% more than this time last year, according to the website Compare the Market. For the UAE and Saudi Arabia, the increases are 22% and 21%, respectively.

Fuel shortage problems

If your flight is cancelled, you should contact your airline or tour operator, as they are responsible for offering refunds, rerouting or alternative plans, says the ABI.

Those going on a package holiday are in a happier position as they are covered by the package travel regulations. This protection means your travel company is responsible for making sure you get the holiday you paid for, either by offering an alternative or providing a full or part refund.

Confused.com’s Tom Vaughan says that if a flight is cancelled because of a fuel shortage, the airline is responsible for providing an alternative flight, or refunding the cost.

“Some travel policies will cover travellers for disruption to their journey, although this must specifically be included,” he says. “Certain policies provide cover for unrecoverable costs when a flight is cancelled or delayed after check‑in and results in a delay of more than 12 hours.”

Aviva, for example, said its policies contain an exclusion for the direct and indirect consequences of war. “This means that claims arising from fuel shortages caused by the war in the Middle East are not covered.”

However, it adds: “We wish to support customers where flight cancellations result in them becoming stranded abroad. In this circumstance, we will consider claims on a case-by-case basis if they are unable to recover costs from elsewhere. This includes unrecoverable costs for hotels and excursions and applies regardless of when the policy was bought (for example, the war started).”

The website MoneySavingExpert reviewed 40 travel insurance policies and found “only a few” that would cover the financial knock‑on effects of a flight cancellation linked to fuel shortages. The list includes the insurer Urban Jungle, which positions itself as a “fair” provider of insurance cover, and the policies that come with the £11.50-a-month Lloyds Silver- and the £19-a-month Halifax Ultimate Reward-packaged bank accounts.

Those who have put together their own travel itinerary are most at risk of losing money spent on prepaid accommodation, car hire and excursions, says the MoneySavingExpert founder, Martin Lewis.

“People’s hotel costs, if they book separately, and other knock-on costs, are potentially at risk,” he says. If the worst happens, he advises contacting the hotel or car hire company directly. “Once you understand that you have no rights, and they say: ‘We’ll give you a voucher’… you suddenly realise you’re doing well, not badly.”

Is insurance still worth it?

Yes, and the mantra is to buy “as soon as you’ve booked”. This is because the cover isn’t just for your trip but in case anything goes wrong before you go.

Gary Murphy, the head of travel at the insurance provider Gigasure, says: “Travel insurance is designed to cover the risk to the individual, such as having to cancel due to illness or being made redundant. War is a mass risk and it’s really difficult to price for that … so generally those type of risks are excluded.

“If you haven’t booked, the best advice is to book a package trip,” he adds. “Then, if something happens, the travel provider is liable to refund, replace or reorganise it. If you don’t want to book a package, then book flexible arrangements.”

While travel policy documents can be off-putting, the “insurance product information document” gives you a concise overview of what is and is not insured.

It is important to check that the benefit limit for cancellation or curtailment is high enough to cover the full cost of your trip, especially if you are booking an expensive holiday or travelling as a family.

Also look at how the excess is applied. About a quarter of policies charge an excess on a “per person” basis, while almost two-thirds apply multiple excesses to a single claim, according to Defaqto.

A “per person, per section” excess applies separately for each person and each part of a claim. For example, if a couple claims for stolen luggage and money under this structure, a £50 excess could be applied four times, resulting in a £200 contribution.

However, the main issue now is not price – it is whether insurance will “be worth the paper it’s written on”, says Jane Hawkes, who is behind the consumer advice website Lady Janey.

Hawkes says: “Consumers should look for policies with strong travel disruption and curtailment cover, and check carefully how insurers handle changes in [travel] advice after booking. For most mainstream travellers, established insurers with strong emergency assistance and clearer disruption policies are likely to offer better protection than ultra-budget options.”

Trip.com’s response

When questioned about Cornwall’s predicament, Trip.com told Guardian Money: “Our team reviewed all available information and liaised closely with the relevant travel partner to assess the options available. Based on the current facts, the flight remains operational and the booking does not fall within the scope of the airline’s applicable waiver policy. As a result, any cancellation would need to be processed in line with the fare rules and charges associated with the original booking.

“The relevant insurance policy documents and terms were made available during the purchase process and sent to the customer by email after purchase. These documents set out the policy terms, including the cover, restrictions and exclusions that apply. We have advised the customer to contact the insurer directly to verify whether the situation qualifies for coverage under their policy terms.”