Do I Need Travel Insurance?

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We recommend that you obtain travel insurance to protect your investment in your vacation. The weather can be very unpredictable. Something may occur in your own life that prevents you from coming.

There are many options to choose from, but rather than list them here, we thought that a recent article reviewing the best travel insurance options would be most helpful to you.

The most popular type of travel insurance is Trip Cancellation Insurance. Typically travel insurance for cancellations will cover the following reasons:

  • 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

Travel insurance will not or may not cover the following:

  • Losses due to a pre-existing medical condition (although you can purchase a waiver if you have a pre-existing condition and get coverage).
  • Changing your mind or deciding you can’t afford to go (although you can purchase ‘cancel for any reason’ coverage and cancel a trip before it starts).
  • Losses for tickets or tours won as an award or by redeeming frequent flier or credit card miles (although some plans will reimburse the re-deposit fee for frequent flyer programs)
  • Travel costs where the purpose of the trip is to obtain medical treatment outside your home country, also called medical tourism (although Seven Corners offers a medical procedure insurance for complications due to medical treatment received outside the borders).
  • Lousy weather conditions (although if you purchase ‘cancel for any reason’ coverage, you can cancel your trip before it starts if you decide you won’t have fun due to the weather).
  • Extreme, high-risk sports such as sky-diving, scuba diving, bungee jumping, heli-skiing and more (although some plans offer coverage for high-risk activities as an optional add-on).
  • Losses due to war (declared or not), military actions, civil disorder, and riots.
  • Losses due to venereal disease, AIDS virus, pregnancy (except complications of pregnancy), or abortion.
  • Losses due to mental, psychological, or nervous disorders including anxiety, depression, neurosis or psychosis.
  • Losses due to nuclear radiation or radioactive contamination.
  • Losses incurred while the insured is participating in an unlawful act.
  • Losses due to the insured intentionally causing bodily harm, including suicide.
  • Losses incurred while the insured is legally drunk or under the influence of drugs.

Helpful source for this information:

What Travel Insurance Does Not Cover

What are the Covered Reasons for Trip Cancellation/Interruption?