fbpx

Property Damage Coverage

22 April 2011
Property Damage Coverage

This coverage provides reimbursement for your pre-paid travel costs (up to the policy limit) in the event your primary residence, travel destination, or business is rendered uninhabitable due to fire, burglary, or vandalism. This is a listed covered reason under trip cancellation coverage and trip interruption coverage.

Contents (click to jump down)
What does Property Damage cover?
Important notes about this coverage
What type of policy covers this?
How much coverage does each company provide?
Summary

Let us tell you a story

Peter and Adele planned to take their two young children to see their grandparents in California. The kids were excited about having fun summer plans and couldn’t wait to see their Grandma and Grandpa.

The weekend before their departure, however, an electrical fire started in the kitchen of Peter and Adele’s home one afternoon while everyone was away. A neighbor saw the smoke and called the fire department who put out the blaze before the entire house was destroyed, but their home was temporarily unlivable and the kitchen and dining areas would have to be re-built. Grateful no one was hurt, the family canceled their travel plans and moved into a nearby apartment while their homeowner’s insurance worked through the damage assessment. This family was able to recover their travel costs and reschedule their trip for the Christmas holiday instead.

What does Property Damage cover?

Many travel insurance plans allow for pre-trip cancellations or post-departure trip interruptions in the event that your home or destination are destroyed due to fire, burglary, or vandalism. This coverage provides up to 100% (or the policy limit) of your pre-paid, non refundable travel costs if you have to cancel your trip before you depart; in addition, this coverage provides up to 150% (or the policy limit) of your pre-paid travel expenses if you have to interrupt your trip.

It is important to note that covered reasons for pre-trip cancellations and post-departure interruptions related to property damage include severe weather and natural disasters and hurricanes as well.

Important notes about this coverage

  • For cancellations due to your business being deemed unsuitable for business due to a vandalism, fire or burglary, the insured or their traveling companion must be directly involved as a key employee required to operate the business or as part of the disaster recovery team
  • This coverage typically stipulates that the home is unlivable, not just badly damaged

What type of policy covers this?

This coverage is available only in travel insurance package plans and not travel medical plans.

Summary

  • This coverage is a listed covered reason for trip cancellation coverage and trip interruption coverage
  • Some plans include property damage to your place of employment within this coverage
  • This coverage does not apply to general damage, but typically requires a home to be unlivable, not just ugly
Share
Damian Tysdal
Author
DamianTysdal

Damian Tysdal is the founder of CoverTrip, and he believes travel insurance should be easier to understand. He started the first travel insurance blog in 2006.

Damian Tysdal is the founder of CoverTrip, and he believes travel insurance should be easier to understand. He started the first travel insurance blog in 2006.