Having seen all the news about cancelled flights and trips abroad we have decided to holiday in the UK this year. Do we need to bother with travel insurance as we are not leaving the country?

A: What a sensible idea. The UK has some wonderful holiday destinations which we forget in the rush to find guaranteed sunshine.

Travel insurance is not as important when you are holidaying in the UK as it is when you go abroad, but there will still be potential costs that would not be covered without it. For example, travel insurance will cover the cost of your accommodation and any transport such as trains and coaches should you need to cancel or cut short your holiday. It also covers any cancellation or delays in the running of any transport — for example a UK flight could be cancelled.

Cover for lost luggage is standard on travel policies, but you may also have cover via your home contents insurance, if you chose the all risks option which covers items outside the home.

Make sure this cover is high enough to replace all your lost luggage before you leave home. If you want the cover to come from travel insurance, then again check the individual items’ level is high enough, and the overall amount of insurance will cover the belongings you are taking with you. Don’t forget cover for all the gadgets you will inevitably take with you, such as phones, laptops and cameras. You can add these onto travel insurance, your home contents or take out stand alone gadget insurance such as that offered by protectyourbubble.com

What is won’t cover you for is medical emergencies as the NHS will treat you for free. Some may cover the cost of getting you to the nearest hospital however.

There are also two main areas to check when buying a policy for a UK holiday. The first is whether the policy sets any conditions on the number of nights spent away from home - many have a two night minimum for example. The other is whether you need to be staying a certain distance away from your main home, a number state 25 miles or more.

Very few UK only travel insurance policies exist, so you may need to buy one with European cover. If you are intending to travel regularly in the UK an annual travel policy may work out cheaper.

But for a seven day trip for someone in their early 50s, with a £100 excess, expect to pay from as little as £6.50 according to comparethemarket.com. The same person wanting to take out annual cover would only pay from £12. But remember with all the cheaper policies, the cover is likely to be more restricted than more expensive ones. Check the policy’s Defaqto rating which rates policies from restricted cover to comprehensive.

If you are the adventurous types and like active holidays, then make sure you have cover for any activities you intend to participate in — white water rafting in Wales is unlikely to be covered as standard!