Dream vacation or nightmare?
Travel insurance can make the difference!
Trip cancellation/trip interruption coverage
Trip cancellation/trip interruption insurance can cover a number of contingencies. Political instability can make planning an overseas vacation a hit-or-miss proposition these days. Even if you’re traveling to a relatively stable country, bad weather, natural disaster or strikes can affect your transportation and accommodations. Trip cancellation/trip interruption insurance will reimburse you for all or a portion of your costs if your trip is cancelled or cut short due to unforeseen circumstances such as weather, airline strike and more. You can also get reimbursed if you must cancel the trip due to sickness, a death in the family or another calamity listed in the policy.
The cost of trip cancellation/trip interruption insurance is usually about five to seven percent the cost of the trip. So the premium on a $5000 vacation would roughly $250 to $350.
You should note that trip cancellation/trip interruption insurance is very different from a cancellation waiver sold by many cruise and tour operators. Waivers, though they are relatively inexpensive at $40 to $60 for a $5000 vacation, provide a very limited set of cancellation triggers. They must be purchased when you buy your tickets and usually won’t cover you before departure or when it’s underway. In addition, cancellation waivers are not regulated by departments of insurance, so if an operator gets into financial difficulty and cannot pay, you may have trouble collecting on your claim.
Baggage Insurance or Personal Effect Coverage
Baggage insurance provides coverage if your personal belongings are lost or stolen or damaged during a trip.
If you travel with expensive electronic equipment, sporting equipment or jewelry baggage insurance may be a good idea. Your homeowners policy provides some coverage for off-premises theft. However, for more comprehensive coverage you are better off purchasing baggage insurance under your homeowners policy as personal effects coverage, than from a travel insurance provider.
Travel medical/medical evacuation insurance
Did you know that Medicare does not provide coverage for your hospital or medical costs outside the United States? Many private health insurance plans also do not provide coverage overseas.
Insurers that do provide coverage for overseas medical treatment might provide coverage on a reimbursement basis only, leaving you to pay the bills, file a claim and wait for reimbursement. And they might not pay for your medical evacuation back to the United States, which can easily cost $10,000 and more, depending on your location and medical condition. Travel medical insurance can cover your expenses for emergency or urgent medical care you need while overseas.
A comprehensive policy might provide additional travel assistance benefits, such as access to a 24/7 telephone hotline that provides services such as lists of English-speaking doctors, directions to nearby medical facilities, and lists of specialists.
As with all insurance policies, travel policies have limitations. Before buying coverage, make sure it provides emergency evacuation services. Does it exclude injuries you sustain while doing high-risk activities such as parasailing, mountain climbing or scuba diving? Does it cover you for pre-existing conditions? Do you need to obtain pre-authorization or a second opinion before emergency treatment can begin?
We can help you determine if your existing health policy provides the medical coverage you need.