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.
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What does Property Damage cover?
Important notes about this coverage
What type of policy covers this?
How much coverage does each company provide?
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.
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.
This coverage is available only in travel insurance package plans and not travel medical plans.
Damian Tysdal is the founder of CoverTrip, and is a licensed agent for travel insurance (MA 1883287). He believes travel insurance should be easier to understand, and started the first travel insurance blog in 2006.