When one makes travel plans, no one fully anticipates the need for canceling those plans. As a result, travel insurance can provide travelers with reimbursement/coverage for unexpected emergencies. Insurance policies enable one to secure travel plans with the assurance that should an emergency occur, the financial loss will be minimal. Insurance documents specify eligibility for claims, procedures for processing claims, and exclusions for claims. Timing, however, is of the essence. Each policy dictates a specific time-frame during which a traveler must notify the travel supplier of the need to cancel the trip. Depending on the nature of the claim will determine the time-frame during which one must notify the agency for reimbursement consideration.
Unforeseen health issues for a traveler or companion, such as a disabling illness or medical condition, falls within the parameters of insurance claims. Unexpected life threatening situations or death of a traveler’s family member also constitutes grounds for trip cancellation. However, the time-frame that notification must be made to the travel supplier and insurance company, no matter what the reason for the need to cancel a trip, must be met.
Subsequently, travel insurance policies also include coverage, under certain guidelines set forth by the policy, when a cruise line, airline, or tour operator claims financial default. Legal obligations, mandated by court ordered appearances or subpoenas, may also be grounds for cancelling travel plans. However, travel insurance also covers trip cancellations due to natural disasters. In some cases, environmental disasters render an area no longer habitable or a disaster has rendered the home of the insured inhabitable. In these situations, the insurance company may provide reimbursement to the insured.
In a time when political unrest or violence adversely affects the destinations for travel, certain restrictions may apply regarding coverage. If travel plans have been made despite unrest in an area, the insurance may not cover a cancellation. The policy should stipulate all conditions for travel cancellations with regard to civil or international unrest.
As with unexpected health issues, natural disasters, and political unrest, a termination or layoff from work may also be covered. For peace of mind, travel insurance provides an economic safeguard for travelers.
When comparing plans on TravelInsurance.com, please click on the “Trip Cancellation” benefit to launch a window with coverage details (including covered reasons for Trip Cancellation), definitions and exclusions. It is important to read the covered reasons before you buy a Trip Cancellation plan as they vary from plan to plan and provider to provider.