The most popular reason for purchasing travel insurance is trip cancellation coverage.
Trip cancellation coverage reimburses 100% of your pre-paid, non refundable travel expenses if you have to cancel your trip for a covered reason. The covered reasons for a trip cancellation are also the covered reasons for trip interruptions.
What is a covered reason for trip cancellation or interruption?
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 the description of coverage. If it’s not specifically listed, or if it is excluded, then it’s not covered.
Typical covered reasons for trip cancellation/interruption include:
- Injury or illness of insured, travel companion, family member, or business partner
- Hurricane or natural disaster strikes destination
- Bankruptcy or financial default of travel company
- Terrorism or mandatory evacuation at destination
- Death or hospitalization of destination host
- Home or business damaged, vandalized, or burglarized
- Jury duty, a required court appearance, or military redeployment
- Required to work, terminated, or transferred
- Victim of felonious assault prior to trip
- Traffic accident prior to trip
- Theft of passport or visa prior to trip
- School year extension
- Legal separation or divorce
- Loss of accommodations abroad due to an illness or death of host family or friends
- and more
Of course, it’s important to note that travel insurance plans vary in their coverage.
If you have to cancel your trip, the situation causing you to cancel must qualify as a covered reason. Carefully review and understand the plan’s description of coverage.
How to get coverage for any reason
Alternatively, travelers can consider purchasing optional ‘Cancel for any reason’ coverage.
This coverage lets you cancel for any reason and receive reimbursement.
For example, there are no travel insurance plans that allow you to cancel your trip due to concerns about civil unrest or political upheaval at your destination. If this is a concern on your trip, ‘cancel for any reason’ coverage can ensure you get at least a portion (50-100%) of your travel investment back.