Planning a vacation? As
your personal insurance advisor, HUB International wants to ensure that you’ve
thought of everything. When you book your trip, consider travel insurance. Between
the time you book your trip and the time you depart, there are no guarantees
that something won’t happen that could make travel impossible. For example, a
family member could become ill or injured, requiring you to stay at home to
care for them.
If you purchase Travel Cancellation/Interruption Insurance
(TCI), you have more options and fewer worries, if you need to cancel your
trip. TCI covers any prepayments and deposits you can’t first recover from your
suppliers. Travel insurance enables you,
for a small percentage of the total cost of your trip, to try again another day to make that journey.
The key thing to watch for with travel insurance policies is that
compensation is payable for a “covered” medical reason or a “named peril”
event. If your reason for cancellation is covered under the policy, the policy
will pay. Here are some nuances you need
to be aware of when selecting your coverage:
Sickness and Accident - Policies sometimes exclude coverage
for pre-existing conditions, but if you buy the policy at the time that you pay
for your trip, that exclusion may be waived.
Terrorism - In
general, policies do not reimburse cancellation for terrorism unless an overt
terrorist attack has occurred in your specific destination within a few weeks
of your planned arrival. Many policies only cover terrorism if you buy within a
week or two of making your first payment on the trip. Some policies will allow
cancellation due to terrorism without a specific event, if an official
government warning has been issued.
Natural Disasters vs. Weather - Natural disasters are
generally covered, but weather often is not. This can lead to some fine print
and disagreements over things like volcanic eruptions (e.g. Iceland in 2010) or
Work - There are a policies
that will compensate you if you have to cancel for a work-related reason, but
these are the exception, not the norm.
You can buy a travel insurance policy that allows you to cancel for any
reason. Broader coverage comes at a higher premium, but an “any reason” policy
can provide flexibility when you need it.
Talk to your HUB International broker and make sure that the
policy you select provides the level of coverage you need.
Learn More about
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Travel Warnings - US State
Travel Warnings - Canada