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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.
A covered reason is a valid reason listed in the travel insurance policy for canceling or interrupting your trip.
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.
The Covered Reasons for Trip Cancellation Coverage:
- 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.
To Buy or Not To Buy Trip Cancellation Coverage
We’ve found that a large number of people have bought a fancy trip cancellation coverage package without knowing it’s true benefit. In a way, that’s like buying a new TV and never figuring out the cool new features that it has. Then there’s also people on the opposite end who didn’t buy trip cancellation coverage and wish they did.
Statistics show that a majority of vacationers question if travel insurance is truly necessary. We believe that everyone should look into this type of coverage before a trip, no matter where you’re going or how long you’ll be away. Life is unpredictable and even though you feel that none of the covered reasons above apply to you at that moment, everything could change within an instant. At the end of the day, the decision to purchase any form of travel insurance is up to you and your family. We simply want you to know what is on the line so that you can make an educated decision.
If you have further questions about what is covered through trip cancellation coverage, reach out to your independent insurance agent. We’d be happy to help!