Trip cancellation insurance is a standard benefit offered with most travel insurance comprehensive plans. This travel insurance benefit provides reimbursement of all your pre-paid, non-refundable expenses should you need to cancel your trip unexpectedly.
In most travel insurance policies, there will be an included list of covered reasons for cancellation. These are situations the insurance company considers legitimate as factors in making the decision to cancel your trip. It’s essential that you are familiar with this list of covered reasons in any insurance policy you’re considering purchasing, since these are guidelines by which any claim you may need to file will be judged.
If you’re not comfortable with the list of covered reasons provided to you, and feel you need more flexibility in making the decision to cancel your trip, you may want to consider purchasing a Cancel for Any Reason benefit.
In addition to covered reasons, travel insurance plans may also list exclusions that you’ll need to be aware of before you purchase a policy. Exclusions are things that absolutely won’t be covered by your insurance company. Examples may include:
- having to cancel your trip because you were detained by customs at the airport and couldn’t get on your flight
- cancelling because of a work obligation
- cancelling because of an illness or injury related to a pre-existing medical condition
There are waivers available for some exclusions, such as the pre-existing conditions waiver, so knowing what’s excluded in your travel insurance policy – and what your individual needs and concerns are – can help you ask the right questions to get valuable additional coverage.