Travel Insurance: What It Won't Cover
You may have heard there's a major increase in travel insurance sales because of all the terrorism scares, environmental disasters occurring, and outbreaks of disease. But there is a caveat. If you become worried about something happening and decide you need to cancel your trip, your policy may not cover it.
Say you're afraid of a bombing in the subway or something like that, it may not be covered. The possibility of a hurricane a thousand miles away that MIGHT hit the beach you plan to visit most likely isn't covered as well. Know ahead of time you'll get no help for any of these situations by purchasing travel insurance.
The guarantee of travel insurance is the promise to pay for any part of your trip that won't be reimbursed otherwise. Those non refundable costs might be plane fare and good faith payments on motel rooms. It only applies to those situations where a policy holder HAS to cancel or delay a trip, or in the event the insured gets stranded it will help cover extra costs.
Medical services are also covered by insurance should you become ill overseas and need medical evaluations. This can be crucial since there are times when your insurance may not cover overseas medical care. Be aware that a number of insurance policies contain various exclusions.
A lot of the potential disasters that increase the insurance sales, end up not being covered. A lot of programs don't cover terrorist acts at all. So, you must select your travel insurance wisely.
Even so, many policies that do include coverage in case of terrorism will only reimburse you for canceling your trip should there be a terrorist attack in one of the cities you would be traveling to, within 30 days of your departure. So if there is a terrorist act in Paris, and your trip was planned for London, your insurance will not cover the costs if you cancel. Basically, there's no available coverage for being afraid.
However, people buy travel policies because they are concerned and afraid. Most travel insurance will not cover those circumstances even though they were the prompting factor for their purchase. When purchasing travel insurance the buyer should beware of exclusions such as time frames as some policies will not cover teroristic acts if the policy has not been in effect for a certain period prior to travel.
In 2006 London, after a terrorist plan to attack planes was uncovered, the majority of insurers did pay for hotel rooms and meals for their insureds who were delayed due to fears that the terrorists would be able to follow through with their plans. Since no attack took place, people didn't get their money back if they decided to cancel.
The cost of protection for traveling is just like every other insurance policy because it depends on where the person is going, how thorough they want their coverage to be and other risk factors. There are policies you can get that can take care of costs incurred while you are stranded, cancellations of the trip, any medical coverage, flight accidents, or lost luggage that are called comprehensive policies. You can just pick what you want covered as well.
Now insurance companies are starting to feature "cancel for any reason," which is essentially a catch all. These policies will offer the holder up to 74% of the cost of the trip if you cancel. Because this policy offers more leniency, it costs much more than regular travel insurance.
In the United States, there are about seventeen million travel insurance policies sold annually. Since the terror attacks of Sept. 11, 2001, the yearly sales of travel insurance have practically doubled. This rise is expected to continue, due to the recent outbreaks of disease and various environmental disasters that are impacting the travel industry.
The thing to remember when there's a major disruption that affects your travel plans, most cruise lines, airlines, and hotels will waive their fees and restrictions for re-booking. Many times you can get relief for your foiled travel plans without the benefit of insurance
By: elvish ummer
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