What to Know About Travel Insurance and the Current Iran and U.S. Situation

There is currently a crisis between the United States and Iran. In recent weeks, tensions between the two countries have escalated rapidly and may continue to do so in the foreseeable future. Many people who are thinking about traveling in this unsettled geopolitical climate may be concerned about their safety and the certainty of their travel plans. Both the United States and Iran are influential around the world, albeit for very different reasons.  As a result, heightened conflict between the two has the potential to impact all areas of modern travel. A savvy traveler should be aware of ways to minimize risk as they travel during uncertain times and should consider purchasing travel insurance for their trips. Below are a few tips on what is and is not covered under a typical travel insurance policy in the context of the current crisis.  

Political Unrest and Acts of War Are Typically Excluded

While travel insurance policies cover many scenarios, it is essential to keep in mind that not every loss event will be covered. Political unrest and acts of war are generally excluded from travel insurance policies. As a result, any losses that you experience due to these types of events, including trip cancellation due to fear of escalation or attacks, will not be covered by your policy. It is important to know this while planning and insuring your trip and will help prepare you to make decisions on your travel plans with the actual insurance coverage in mind.

Terrorism Coverage

Though losses due to political unrest and acts of war are not typically covered, incidents due to terrorism are typically covered under many policies with trip cancellation coverage. An act of terrorism must meet the requirements of the definition under your travel insurance policy. Travelers should not assume that a violent event will be deemed to be “terrorism,” even if that characterization is being portrayed in the media. Most insurers will only include a terrorist attack as such if the U.S. State Department deems it to be one.

Travel Insurance Can Help

Given these issues, it is understandable that people are looking for assurance in times that feel uncertain. Although standard trip cancellation coverage will only allow for cancellation and reimbursement for specific covered reasons, there is one option that will allow travelers to cancel their trip for worries or fear of traveling due to the geo-political issues. An optional upgrade known as Cancel For Any Reason can provide the peace of mind that every traveler needs in a world that can change in an instant. With a Cancel For Any Reason upgrade, it is possible to cancel travel plans for any reason at all. The Cancel For Any Reason policy must be purchased within a set amount of days from your initial trip payment (usually 14-21 days depending on the policy) and you must insure 100% of your pre-paid and non-refundable trip costs. This coverage provides the policy holder with reimbursement up to seventy-five percent of the at risk trip costs (vs. 100% for standard trip cancellation coverage). 

Be sure to compare travel insurance policies to obtain the best possible coverage for your particular trip. Review your policy’s definitions of included and excluded events if you are concerned about violence or potential violence in a region. Follow travel and insurance articles and updates on the subject and be aware of travel warnings published by the United States government agencies.