Anything can happen to ruin a vacation. That's why each year hundreds of thousands of people buy travel insurance. However, some travelers find their insurance claims are denied for reasons that could have been avoided. Leading travel insurance comparison site, Squaremouth, reveals the top mistakes travelers make that lead to a claim denial.

Mistake 1: You're Not Medically Stable When You Buy Travel Insurance

While travelers usually know they need to be medically cleared to travel, many don't know they need to be medically stable when the policy is purchased, in order to have coverage.

Squaremouth Recommendation: The best thing to do in this case, is to wait to buy a policy (and maybe even book the trip) until medically cleared to travel.

Mistake 2: You Think Travel Insurance Covers Anything Bad That Happens

Squaremouth says the number one misconception of travelers, is that travel insurance will cover "anything that could happen". Travel insurance covers a specific list of events, which are stated in every policy, and often varies between policies.

Squaremouth recommendation: Travelers who want the broadest level of coverage for "anything", should consider purchasing Cancel For Any Reason coverage. This time-sensitive upgrade allows them to cancel for a reason not listed in the policy.

Mistake 3: You Don't Have Documentation to Backup Your Claim

A claim may be denied if you can't provide proof of your financial loss. Squaremouth says travelers sometimes provide a hand-written receipt or itinerary during their claim, which are not accepted as approved documents by travel insurance providers.

Squaremouth Recommendation: Keep all receipts and ask for itemized receipts from travel suppliers, when possible.

Mistake 4: You Want an 'Inconvenience Payment'

Most travel insurance policies are designed to reimburse you once you have had a financial loss. Typically, travel insurance does not provide payment if you were inconvenienced, or weren't able to enjoy your time.

Squaremouth Recommendation: Contact your travel supplier if you have been inconvenienced or were not able to take full advantage of what you paid for. They may be able to offer you a refund or credit.

Mistake 5: You Buy Travel Insurance Too Late

Sometimes travelers buy a policy after they hear about a storm, or other events, on the news and file a claim to cancel their trip. Typically, if an event is publicized, such as a storm that has been named by The National Hurricane Center, it is too late to buy a policy.

Squaremouth Recommendation: Purchase a policy once you've made your first booking toward the trip to ensure the longest amount of coverage before your trip begins.