We couldn’t travel to Hawaii due to wildfires – but Southdowns won’t pay insurance claim: CRANE ON THE CASE

My wife and I got married last summer and went on our honeymoon to the west coast of America. We started in July and had a three week itinerary, visiting multiple cities and finishing in Hawaii. 

We were set to travel from Los Angeles to Honolulu on 11 August. But the day before, we woke up in LA to news of the wildfires on Hawaii’s Maui island.

A state of emergency was announced, so we had to cancel that leg of the holiday last-minute and find a new hotel in LA for the five days until our flight back home.

We had travel insurance with Southdowns, so when we returned home we made a claim. 

Trip cancelled: The newly married couple planned to end their honeymoon in Honolulu, Hawaii (pictured) but had to abandon their trip on news of the devastating wildfires in the state

This was for the non-refundable return flights from LA to Hawaii that we couldn’t use, and the portion of our hotel costs in Hawaii that we couldn’t get refunded directly. 

This totalled about £1,500, minus the excess on our policy.

We were shocked that it was rejected – not once, but four times. Surely this is the definition of an obstruction to our trip that was out of our control? B.C, Oxfordshire

Helen Crane, This is Money’s consumer champion replies: Congratulations on tying the knot – sorry to hear your honeymoon didn’t go quite to plan. 

You are keen to stress that you are in a fortunate position. Clearly, the impact of the August wildfires was much graver for those living in Hawaii – not to mention the people that tragically lost their lives.

While the money involved in your insurance claim is not a huge sum, you told me you were ‘absolutely sick of insurance firms just doing whatever it takes not to pay out’ – and were prepared to ‘fight this to the end’ as you were sure you had been wrongfully treated. 

‘I have jumped through every hoop they have thrown at me, put up with their nonsense, but I am simply sick of insurances operating like this. They need calling out,’ you said. 

First I should say that it is vital to read the finer details of a travel insurance policy, and make sure you know what you are – or more importantly, aren’t – covered for. 

Holidaymakers are left out of pocket every year when they realise a snag in the small print means they won’t be getting any money back when a trip goes wrong. 

According to the Association of British Insurers: ‘If your policy includes trip disruption or natural disaster cover, you should be covered if you have to cut short or cancel your holiday due to wildfires.’

You told me your policy did include this, but still you were fobbed off with a raft of excuses when you tried to claim on your insurance – some of which weren’t even true. 

The first and second times you tried to claim, Southdowns said it was because the state of emergency was only on the Maui island, not Honolulu where your flight was set to land.

Hawaii is made up of a series of islands. While it is true that the island of Maui bore the brunt of the disaster, the state of emergency was extended to the entire region, including the island of Oahu where Honolulu is located, the day before your flight on 10 August. 

You provided evidence to prove this, in the form of a statement published online by the Governor of Hawaii – but your insurance claim was still rejected.

Catastrophe: This image shows the impact of the wildfires on Lahaina on the island of Maui

The next time you tried to put through a claim, you were told you weren’t eligible for a payout because your trip had not started in the UK. 

Again, you provided proof that you had flown from Heathrow to the US and then planned to travel on to Hawaii before returning to London – but this was not accepted. 

Even though you hadn’t flown directly from London to Honolulu, you believed Southdowns still should have covered you based on the terms of the policy.

On your fourth attempt, you were told that you had not met the terms and conditions of the policy because you had not cancelled your trip before you left the UK.

That one was true – but as you pointed out, you flew out of London on 17 July and the wildfires did not begin until 8 August. Insurance policies shouldn’t rely on the traveller being a particularly talented psychic.

On three occasions, you said you were forced to chase up Southdowns for an update on your claim – only to be told it had already been rejected.  

You wanted to claim for the flights to Hawaii that you couldn’t use, which cost $936 (£740) and the portion of your hotel stay that you couldn’t get refunded directly, which amounted to $699.54 (£553).

The maximum cover on your policy was £1,500, which just about covered those costs minus the excess based on the exchange rate at the time. 

You’d had to pay out an additional $2,267 for your extra five days of accommodation in LA, which you couldn’t claim, so were especially keen to get the money back to cover some of that.

I decided to speak to Axa Partners, the insurance firm which underwrites Southdowns policies.

Review: After my intervention, Axa Partners, which underwrites Southdowns insurance, decided B.C and his wife did ‘act within the terms of their policy’

I am pleased to say it has reviewed your case again and reversed its decision, agreeing to settle your circa £1,500 claim in full.

An Axa Partners spokesman said: ‘We are sorry that Mr and Mrs C. have experienced issues while claiming on their travel insurance. 

‘The circumstances surrounding their claim were unusual, however, upon review we have decided that they have acted within the terms of their policy. 

‘We have been in contact with [them] to confirm their claim will be settled in full.’

It further explained that the small print of the policy only covered you if you had to ‘curtail’ your trip due to the authorities recommending that people evacuate the area you were travelling to.

It said it initially turned down your claim because to ‘curtail’ the trip, by its definition, would have meant you returned home to the UK early. You didn’t do this, instead deciding to stay put in Los Angeles and enjoy the final days of your honeymoon.

However, after my intervention it agreed that you were indeed within the rules of the policy, and agreed to pay out.

I’m glad I could help you take the fight to the insurance industry – hopefully you now feel you’ve got the fair treatment you deserve.