Trip cancellation coverage reimburses travelers for their pre-paid, non-refundable travel expenses if they have to cancel their trip due to a covered reason. The covered reasons also apply to trip interruptions. This is also known as travel insurance, not to be confused with Travelers Insurance which is an insurance carrier.
Travel insurance plans only cover you for the risks that are listed in their coverage description. If it’s not specifically listed it’s probably not covered.
Trip Cancellation Coverage Has These Covered Reasons:
- Injury or illness of insured, travel companion, family member, or business partner.
- Hurricane or natural disaster strikes destination.
- Legal separation or divorce.
- Required to work, termination, or job transfer.
- Bankruptcy or financial default of travel company.
- Terrorism or mandatory evacuation at the destination.
- Death or hospitalization of the destination host.
- Victim of felonious assault.
- Jury duty, a required court appearance, or military redeployment.
- Serious traffic accident prior to the trip.
- Theft of passport or visa prior to the trip
- School year extension.
- Loss of accommodations due to an illness or death of a host family or friends.
- The death of a family member. The family member must be a covered family member and every travel insurance plan will define this differently. For example, a sister-in-law or brother-in-law may not be considered a covered family member. It is important to determine the definition of “family member” before purchasing a travel insurance policy.
These are all reasons why you should think about getting trip cancellation coverage and know when you can use the coverage. It’s great if you buy it, but if you end up with fancy trip cancellation coverage and don’t know what you are covered for then it’s kind of like buying a new TV and never figuring out the cool new features that it has. Can you imagine not knowing that your TV can connect to the Internet and you never need cable again? Well, we don’t want that to happen with your trip cancellation coverage.