Travel insurance covers a traveler's vacation cost against cancellation and interruption while also providing medical, lost or damaged property and travel delay coverage. Travelers are reimbursed if they have to cancel or interrupt their travel. They are also covered should the need arise for emergency medical treatment, medical evacuation and a number of other benefits.
Travel Guard will provide reimbursement of rental property as long as their is a written agreement/contract between the insured and the renter. Reimbursement of your pre-paid, non-refundable costs will be made if the trip cancellation or interruption was caused by a peril named in the policy.
Insuring companies now have policies which allow you to "cancel for any reason" and get a reduced amount refunded (75% - 90% depending on product) in the event you cancel for a non covered reason. To be eligible for these products, certain conditions must be met which include: purchasing insurance within 14 days of your initial trip deposit, insuring the full prepaid trip costs and you must cancel 2 days or more prior to your departure date.
Typically, trip cancellation coverage refunds prepaid, non-refundable payments if you have to cancel your trip for one of the reasons covered by your policy. Covered reasons include the following: sudden medical emergencies, unforeseen financial default of an airline, cruise line or tour operator, severe weather, terrorist incidents, and jury duty. Changing your mind about taking a trip or having certain business obligations are not covered reasons.
To determine the insurable cost of the trip, add together the cost of all of your non-refundable pre-paid trip arrangements.
4 Simple (and Important) Things to Remember about Travel Insurance
1. Understand what your policy covers
Like all insurers, travel insurance companies live and die by the fine print in their policies. It bears remembering that you should read that fine print before buying a policy to make sure you're covered for the problems you anticipate (or perhaps even for those that you don't). Are you concerned you might have to cancel your trip because your Great-Aunt Sue is in the hospital? Make sure a great-aunt is one of the close relatives for which you can cancel a trip. Do you have hurricane phobia? Make sure you can cancel easily if a hurricane warning is issued for your destination, not just when all travel there is suspended because of an imminent storm (in some cases a day or two difference either way determines whether or not you will be reimbursed for your cancellation).
2. Documentation is key
There was sad story recently of someone who bought insurance and canceled a trip because of an illness, expecting to be reimbursed for the cost. Unfortunately, the person didn't bother to see a doctor because this was a long-standing medical condition that the person experienced from time to time. Sad to say, there was no reimbursement forthcoming because there was no doctor's record that the individual was sick. Fair? Well, why should an insurance company simply take your word that an illness has prevented you from traveling? If you're sick, you should see a doctor and get a note. If you have a car accident, you need to take pictures of the damage. If something is stolen from you, you must file a police report. Having this documentation may be the difference between a welcome reimbursement or a very unwelcome refusal from the insurer.
3. Don't pay for coverage you don't need (but do pay for coverage that you do need)
High reimbursement numbers may give you a feeling of security, but do you need $1 million in emergency evacuation coverage? Probably not, unless you're going to some remote jungle in the middle of nowhere. Do you really need a policy that allows you to cancel for any reason? Probably not, though you'll pay almost double for that privilege. And what about health care coverage? Travel health insurance pays for what your regular insurance doesn't, and your regular insurance doesn't go up just because you make a claim (unlike auto insurance). So there is no benefit in paying extra just to get "primary" coverage.
As with the case of the policy offering "primary" health insurance, be aware of things that sound as if they are a great benefit but actually add little value to your policy. A policy isn't better simply because it is labeled "gold" or "platinum." Instead, read the fine print to make sure the coverage levels are what you need. Don't pay extra for a car-rental policy that covers "exotic" vehicles such as $80,000 Mercedes convertibles and Cadillac Escalade SUVs unless you plan to rent one. Don't pay extra for a policy covering extreme sports activities such as bungee jumping or mountain climbing unless you plan to participate in these activities. But always get the narrowest policy that covers you adequately for the activities you plan to partake in; not all policies will cover you for injuries in white-water rafting, for instance, unless you buy a higher level of coverage.
4. Insure yourself when you put down a non-refundable deposit far in advance—and when you do buy insurance for these trips, buy it immediately
Travel insurance is an absolute must is when you are booking a non-refundable trip far in advance. Who knows what may happen 6 to 12 months down the line? Will you be laid off from your job? Will your parents become incapacitated by an unexpected illness? Will you trip and fall down the stairs the week before you're expected to leave and have your ankle in a cast for 8 to 12 weeks? Will you injure yourself in the gym two days before your departure? Will your tour operator go bankrupt and be unable to refund your deposit? The future is unknowable, and the purpose of insurance is to give you peace of mind when you have to face the unexpected and unpleasant. It's certainly worth while to spend an extra 5% of your trip cost to buy insurance that will reimburse you for 95% to 100% of your out-of-pocket expenses in the case of an unforeseen occurrence.
Moreover, most travel insurance policies offer much broader coverage if you buy a policy within a few days of putting down your initial deposit. You may only be covered for pre-existing medical conditions in such a case. And you will certainly not be covered if your tour company goes out of business unless you have purchased a policy before the company declares that it's in financial dire straits. So-called "Cancel for any Reason" policies must usually be purchased within a few days of your initial trip deposit in order for you to receive the full benefits. So here are the basics: You must purchase your travel insurance policy before something goes wrong, so the longer you wait, the more risk you must incur yourself.
