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Possibly. More fool them, in that case. I think my annual multi-trip policy only cost about £60 for the year. I'm assuming that if they're spunking £17k on a ski chalet they'll be taking other foreign trips during the year.
I made sure that I had good travel insurance after a fall on the bike generated an $8,000 bill in Colorado, mine is quite a bit more than £60, but apparently downhill mountain biking is a class 4 sport - the most dangerous that they'll insure. Who knew?
I wonder if they haven’t got insurance or relied on their bank account insurance (or similar) mine for example is limited to £5000 for the insured person only per trip If the FCO advice is used as the reason. this is a last throw of the dice?