The generic term 'trip cancellation' is self explanatory, but the rules allowing the insured to cancel are many, and vary greatly from policy to policy. Below are some of the more common reasons that you might be able to claim on a travel insurance policy when trip cancellation is present. This list is in no way definitive and has been compiled for illustration purposes only. The travel insurance policy you purchase may or may not carry the benefits listed below. Always check the documentation or call a Coverhunter.com agent to discuss.
Death, injury or sickness
As with all types of insurance the term 'unforeseen circumstances' is key. Travel insurance policies are designed to assist when something unpredicted happens such as, sickness, injury, or death of an insured, immediate family member, traveling companion, or business partner. The injury or sickness needs to be serious enough that it would reasonably cause a trip to be canceled or interrupted. If you need to cancel a trip due to Injury or sickness of an immediate family member or business partner, that injury or sickness must be life-threatening, or because the immediate family member requires the insured's or traveling companion's care.
Weather
During 2004-2006 people living along the Gulf Coast in the US saw an increase in tropical storms and hurricanes, and as a result people had to cancel their travel plans. In these cases if travel insurance had been purchased, it needed to have been purchased before the storm was named by the national hurricane center. If travel insurance is purchased after a storm is named, then claims relating to that storm cannot be made
Industrial disputes and strikes
Industrial disputes and strikes can cause chaos to travel plans and some travel insurance policies will cover a traveler when this happens. As with inclement weather, the timing of the travel insurance purchase is key. You are only covered if the travel insurance policy was purchased before the date that the labor union members voted to approve a strike. It must also cause a complete cessation of travel services at the point of departure or destination. This clause can vary so always check your policy documentation.
Your home or destination
If your home or destination residence is burgled, vandalized, affected by a fire, flood or similar natural disaster and rendered uninhabitable, a travel insurance policy that includes trip cancellation would likely assist if a claim had to be made.
Other instances involving you or your traveling companions
Travel insurance providers more often than not assist travelers if they or their traveling companion(s) are subpoenaed, are required to perform jury duty, quarantined or hijacked; again trip cancellation must be included in the travel insurance policy if this assistance is to be considered.
Terrorism and other benefits
Many other benefits are available within trip cancellation; terrorism can be covered, financial default and issues with business and business partners, but they are all specific to the travel insurance policy that you purchase. You must always read the documentation provided with your travel insurance policy.
Cancel for Any Reasons
In October 2005 the first travel insurance policy allowing a traveler to cancel for any reason was introduced by Travel Safe. This benefit pays a %age of the trip cost if the policy is purchased within X days from the date your trip was purchased. Other insurers such as AIG Travel Guard and Travelex soon followed suit.
Cancel for Work Reasons
Travel insurance policies with a benefit designed to assist travelers who had to cancel for work reasons soon followed, and many travel insurance providers now carry policies with this benefit in their portfolios.
Disclaimer
The benefits listed in this article are for illustration purposes only and are not necessarily included in the travel insurance policy that you purchase. If you have any doubt always call and speak to a Coverhunter.com agent who will be happy to assist. You can also research all of the plans on our site by using the menus at the top of any page.
Grateful clients
In December 2000 Kaye and Mick Bolder were preparing for a multi stop trip to Europe. The first stop was Lancaster, England where they planned to stay with their grandchildren for 6 nights, then they were to spend a few days in the Lake District, before moving on to Lofoten, Norway where they hoped to see, amongst other things, the northern lights before returning home to California. This trip had been purchased 8 months before Gary Fincher, co owner Coverhunter.com spoke to Mick and convinced him to purchase a $111 travel insurance policy three weeks before he was due to leave.
The drama started at San Jose International airport as Kaye and Mick were waiting in the departure lounge. Kaye heard their names being called over the PA system so went to a phone and spoke to a customer service representative. She was told that the police needed to speak to her urgently, and to call the local sheriffs office; these were the only details that were available! Beside herself with panic, she dialed the number and was given the news that their home was in flames and about to collapse. In a strange way Kaye was relieved as she had feared a family member had been injured or worse.
Returning home was horrible Kaye recounted, the house was just black smoldering ashes, and the flames burnt so hot that the wheels on the car that was parked in the driveway had 'melted'. 'We'd lost everything and we couldn't go to Europe' Mick said, 'We were devastated'. Thankfully their home insurance had their home rebuilt and most of their material possession replaced. The car was replaced by their auto insurance and whilst all of this was happening the $4500 they received from their $111 Travel Insurance policy helped fund a six week road trip from California up through Oregon and Washington and home via Idaho and Nevada.
In 2008 Kaye and Mick still hadn't taken that trip to Europe but they call regularly and purchase travel insurance policies and recommend Coverhunter.com to all of their friends.