Travel insurance can be a tricky thing to navigate – especially with terrorism on the rise as it is today. While not every carrier provides terrorism coverage and the coverage can vary from policy to policy, it is best to get a quote before thinking about purchasing this kind of insurance.
Terrorism insurance is defined as the ability to interrupt or cancel your plans should an act of terrorism happen in your destination within a specific period of time of your trip. While this time frame can vary, it usually has to be within seven to 30 days before the trip is scheduled to begin – IE before you arrive in the destination.
What constitutes an act of terrorism is defined in two major ways. One is, of course, that the United States government has declared it an act of terrorism. The other way that many agencies define “terrorism” is that it is not civil disorder, a riot, and must not have been an act of war – whether or not war is declared. However, if this is the case and there is some sort of civil unrest that is fairly violent, travelers should be aware that it may not always be classified as “terrorism”. This is a reason to be fairly cautious when planning a trip.
Of course, another thing to be cautious about is how far the coverage goes. Some polices only extend to a city that is specifically planned for the trip. Other policies extend to the country or other regions as a whole. If an act of terrorism occurs and you chose to cancel due to that act prior to the purchase of terrorism insurance, it’s “known peril”. The policy will not apply.
Another gray area is what kind of terrorism is included in the plan. Some include acts from U.S. and domestic threats, while others may not. Some will tell you that it is time sensitive and only cover from the date of purchase. For this reason, it should be considered while planning a trip to terrorism-prone places.