10 travel insurance pitfalls - Telegraph Let's imagine that you're on your way to pick up your children from your ex-wife's home to take them on a week's holiday on the Continent. Everything is in order - you have your passport, tickets and travel money. And you have a family travel insurance policy. But when you arrive, your ex drops a bombshell. You're not taking them abroad, she says. She has checked the small print of your insurance policy and found that children are not covered if they don't live with you. This is one of the many exclusions waiting to catch you out in the small print of travel insurance policies. Read the following examples, identified by researchers at Defaqto, the data company, to ensure that your policy covers exactly what you expected it to. A third of annual policies won't provide cover for your children (or stepchildren) if they don't live with you, Defaqto found. Age UK, Halifax, More Than, Nationwide Building Society, Ski Club of Great Britain and Thomas Cook are among the companies that don't cover non-resident children. But insurers including Thomson, Co-op Bank, Tesco Bank, RBS/NatWest, the Post Office, Barclays and Lloyds TSB don't restrict cover in this way.