Customers - particularly those of a thrill-seeking disposition - need to scan the small print with a gimlet eye before signing a travel insurance policy, the Association of British Insurers (ABI) said today.
Spokesperson Malcolm Tarling said many excluded high-risk sports so it was important to have some idea of the itinerary before you go.
"If you're thinking of getting involved in some of the dangerous sports, which many people will do when they go on holiday, the first thing you need to do is to check your policy before you actually sign on the dotted line."
He added: "If you're planning to go white-water rafting down the Colorado River or something, your bog-standard travel policy won't cover you."
Mr Tarling also warned travellers not to be complacent simply because they were embarking on a short break.
"I'd say it's very important, even for a couple of days. It doesn't take more than a couple of minutes for you to lose your bags."
Recent trouble with lost baggage at Heathrow airport has highlighted the issue of travel insurance.
"Most travel policies will cover flight delays
provided the delay has been for a specified minimum number of hours, and that may be for up to eight hours," Mr Tarling said.
"They normally cover delays as a result of strikes and industrial action, adverse weather or mechanical breakdown of the aircraft."
He continued: "Most bog-standard policies will cover cancellation but the cause of the cancellation will be specified in the policy; typically your illness, or an illness of someone travelling with you, or a close family member."
There has been a 22 per cent increase in lost baggage across Europe, according to figures from the Association of European Airlines.
Meanwhile, the travel insurance company InsureandGo has reported an 85 per cent increase in claims in the first half of 2007 compared to the same period last year.
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