When signing up for travel insurance, most people don’t bother to check the small print on which situations are covered and which are not. We are so excited to leave on vacation that we just don’t look. However, the circumstances in which you will or won’t be covered should be looked into more carefully before venturing off to your destination. What is Covered Trip cancellations are the number one reason that vacationers are reimbursed under travel insurance. The insurance pays for costs that are non-refundable – plane tickets, hotel costs, and tour costs, for example.
Cancellations are covered for reasons of illness, home fire, job loss, or the death of a relative. Travel insurance also provides medical coverage while you are on your trip. Being sick or having an accident in another country can be frightening, especially without medical coverage; most health insurance doesn’t function in other countries. Travel insurance can give you up to one million dollars worth of medical emergency coverage, but this depends on which company you use.
If illness or accident does happen to interrupt your trip, travel insurance also provides coverage for the unused days on your trip and pays for expenses to get you back home. Lost baggage is the bane of any travelling experience. Show up at your destination and discovering that your luggage doesn’t come around the conveyor is the stuff of nightmares. Travel insurance covers lost, damaged, and stolen baggage up to the policy limit, which is usually between $500 and $2000, allowing you to replace items or buy substitutes so you can still enjoy your trip.
What Travel Insurance Doesn’t Cover While most policies do cover terrorism, it is common for travel insurance to not cover civil unrest and acts of war. If your plans change for these reasons, most travel insurance policies won’t cover your costs. Cancelled tours are not covered. This doesn’t mean when something is canceled by you – tours that are cancelled by the tour providers themselves fall under this category. If you have a health problem caused by a pre-existing condition, your treatment likely will not be covered by your travel insurance.
Commonly excluded issues include:
• pregnancy complications and childbirth • psychological illness • any illness requiring medical attention before signing up for insurance • any illness requiring medical attention before trip is underway
Injuries resulting from extreme and adventure sports usually aren’t covered, either. Read your travel insurance documents carefully. Pet illness and death are not covered. Though many people have beloved pets who are part of the family, and most pet-owners would choose not to go on a trip if their pet was ill, travel insurance won’t cover cancellation for this reason. This includes service animals for people with disabilities. This unfair exclusion may change in the future, but for now, it is still in place.