You've checked the brochures, reviewed on the internet and paid the deposit - the great holiday countdown has begun! Time to look at the other things - like the travel insurance. Take time now and save yourself potential problems later

What cover do you need?

Nobody wants to find themselves in need of insurance in a foreign country. All policies have limits and exclusions. You need to know what is, and more importanly, what is not covered by your policy before you travel.

Basic policy requirements:

? 24 hour emergency helpline and legal expenses cover. Make a note of this number in different places so you can find it easily if you need to.

? Medical cover insurance for a minimum 1 million pounds in Europe and 2 million pounds in the USA and rest of the world. This may seem a huge figure, but it does cover the cost of an air ambulance should it be necessary.

? 1500 pounds minimum cover for your personal possessions and baggage. Most policies have a single item limit. Check this figure on your policy covers for example, the cost of replacing an expensive camera or watch.

? 3,000 pounds minimum "cancellation or curtailment " cover. This covers you if, for example, you have to cut short your holiday to return home due to a family emergency. You could also claim back the cost of any prepaid trips booked.

? At least 1 million pounds of personal liability cover in case you injure somebody or damage their property.

? Your insurer should be a member of The Financial Ombudsman Service. They are an impartial organisation who can help you to settle claims and get compensation. Their services are free and can be invaluable in case where you may have a dispute with an insurer.

Hints and tips for buying your policy:

? Always, always tell the insurer about any pre-existing medical conditions - failure to do so may result in your policy being invalidated.

? Read the details carefully and ask as many questions as you need to to understand exactly what your policy covers.

? Check cover exclusions and limits. For example, do you need cover for sporting activites? Check the details.

? And remember. Check the excesses on the policy.

? Check your household contents policy (personal possessions or all risks section) Your possessions may be covered when you are away from home. Taking baggage cover off your travel policy can save you money on your premium.

? European travel perk - get an EHIC (replaced the E 111 form in 2006). Pick up a form at the Post Office, complete and send it off. Many insurers will waive up fees of between 50 to 100 pounds for excess on policies. This card is only valid in Europe.

? Check with your credit card company and your bank - certain types of accounts carry comprehensive travel insurance as a benefit. Ring and check or call in a your branch - you could sav Read more

The Foreign & Commonwealth Office (FCO) says that many people deeply regret not taking out travel insurance. They think their credit card accident cover, home insurance, or private health cover is sufficient. The reality is that you do not have appropriate travel insurance and you suffer serious injury or lose valuable possessions you will face harsh financial consequences.

The FCO has guidelines for what your insurance should cover in the event of an emergency or other problems you may experience while on holiday.

The real cost when things go wrong. An emergency abroad can be extremely expensive. If you need to be returned to the UK it could cost you thousands of pounds, unless you are adequately insured:

* £30-35,000 - air ambulance from USA’s East coast

* £12-16,000 - air ambulance from the Canary Islands

* £15-20,000 - scheduled flight, stretcher and Doctor escort from Australia

What should my travel insurance policy cover?

* medical and health cover for an injury or sudden illness abroad – more information on medical and health cover page

* 24 hour emergency service and assistance

* personal liability cover in case you’re sued for causing injury or damaging property

* lost and stolen possessions cover

* cancellation and curtailment (cutting short your trip) cover

* extra cover for activities that are commonly excluded from standard policies, such as jet skiing.

The policy should cover the whole time that you’re away.

Your policy may also have:

* personal accident cover

* legal expenses cover

* financial protection if your airline goes bankrupt before or during your trip.

Many insurers will extend cover if you ask them. If not, shop around for a specialist policy.

Common travel insurance policy exclusions

Always check the conditions and exclusions of your policy:

* most policies will not cover drink or drug-related incidents

* you must take reasonable care of your possessions or your policy will not cover you.

Travel insurance buying tips

* shop around to find a good price and the right product rather than opting to travel without cover

* cheaper policies will usually have less cover – for some the price seems most important, but is it worth the initial saving?

* consider annual multi-trip insurance if you make several trips a year – you’ll save time and money.

Cancelling or cutting a trip short

A good insurance policy will cover you for cancelling or cutting a trip short. Check carefully to see exactly what you’re covered for:

* accident

* illness

* pregnancy (unknown when you buy the policy)

* jury service or witness summons

* home emergency: fire, storm or flood, burglary

* redund Read more