Beware the pitfalls of ski insurance

If this week's snow makes you dream of a skiing holiday, beware. While two million holidaymakers will hit the slopes this winter, a quarter of them will fail to take out insurance, according to esure, and run the risk of a huge bill if they're injured.

Skiing and snowboarding holidays are the trips most likely to end in a trip to Casualty.

Not taking out a policy can be a very costly mistake. A broken leg will cost you between £13,000 and £16,000 in the U.S. and up to £7,000 in Europe, according to Norwich Union.

Many holidaymakers wrongly rely on the European Health Insurance Card (EHIC) to pay for medical treatment. This means you pay only what the locals do - and that doesn't cover mountain rescue, private treatment and the cost of getting you home. Evacuation from the slopes by helicopter costs £1,500.

You could need to fly home by air ambulance (costing £4,000 in Europe and £8,000 in the U.S.) even if you've only damaged your knee, as some airlines refuse to carry passengers who can't bend their legs.

And of course it doesn't extend to loss of baggage, cancellation or having to cut your holiday short.

French ski resorts often won't sell you a lift pass unless you're insured.

It's vital you know what your policy covers before heading uphill because ski insurance is riddled with exclusions. And check the claims limits are adequate, as you need at least £2m for medical expenses, £1m for personal liability and £1,500 for belongings.

Going off-piste without a qualified ski instructor is often not covered. Direct Travel and American Expressare among the few that offer it. Skiing out of bounds is always barred. And you won't be able to claim for an accident while drunk or on drugs. Claiming for stolen equipment can be tricky, too. Most policies state that skis and boards must be locked away or within sight when not in use, which is difficult when stopping at crowded mountain restaurants.

Another no-no can be other winter activities. The really dangerous ones, such as heli-skiing or parascending may be excluded, but so too are tobogganing, sledging and ice-skating in some cases.

Bad weather can blight a skiing holiday - either too much snow or too little. But many policies will provide compensation of up to £200 for a precious day lost. You'll need written proof from the resort that lifts were closed to claim successfully.

If you already have an annual travel insurance policy, check it covers winter sports. Adding this to an existing policy can be the cheapest option. American Express, for instance, charges just £10.45 for a family to add it to their worldwide policy. Family policies can also be good value, but check the definition. The most generous policies, including those from Direct Travel and esure, cover up to six children.

Age limits for children can vary, so check the policy. Some stop at 16 or 18, but the best cover those in fulltime education up to the age of 23.

Surprisingly, an annual policy can be cheaper than a single trip. Comparison website moneysupermarket.com found that an annual worldwide policy for a family of four from Marcus Hearn cost just £60, but two weeks cover to America for a family is £76 from Complete Ski.

The same is not true in Europe - ten days costs £20 with Direct Travel and £28 for two weeks with Primary Insurance for an individual. But an annual policy covering Europe is £53.37 from esure and £59.52 from Premier Travel.