Trip cancellation insurance coverage reimburses up to 100% of your pre-paid, non-refundable travel costs when an unforeseen and covered event causes you to cancel your trip.
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What does Trip Cancellation cover?
What’s NOT Covered?
Important notes about this coverage
What type of policy covers this?
How much coverage does each company provide?
Rob and Jennifer planned a Colorado ski trip with their two children. They pre-paid for a ski package that included rooms at a lodge right at the base of the lifts. Their ski package also included lessons for the kids and lift tickets for the parents.
Just four days prior to departure, the kids woke with high fevers and sore, scratchy throats. A trip to their pediatrician revealed they had strep and canceling the trip was recommended by the doctor.
With trip cancellation coverage on their travel insurance policy, Rob and Jennifer were able to recover their pre-paid non refundable costs – even the lift tickets. They could take the kids skiing another time.
Trip cancellation insurance coverage reimburses you (up to the covered amount) for pre-paid non-refundable trip costs if you have to cancel your trip for a covered reason.
This benefit also pays the additional cost in the per-person rates (known as a single supplement fee) if a traveling companion’s covered trip is canceled but yours is not.
While each plan defines what its trip cancellation insurance benefits covers, the following are common reasons for trip cancellations:
This benefit is distinctly different from trip interruption coverage, which goes into effect after a traveler has started his or her trip.
The trip cancellation insurance coverage of any policy covers the unforeseen events that are listed in the policy. This also means that if the plan doesn’t list the event, then cancellation for that reason won’t be covered.
Trip cancellation coverage will never cover a traveler for:
It’s important to note, however, that adding the ‘cancel for any reason’ option to your travel insurance plan will help in the situations above when you are not covered.
With Cancel For Any Reason (CFAR) coverage, you can cancel your trip for any reason at all, as long as you:
Some exclusions can be waived by adding options to your travel insurance policy:
* Some plans include cancellations for work reasons benefits in their plans. Other plans have ‘cancel for work reasons’ as an option that can be added.
Almost all package plans include some coverage for trip cancellations, but what the coverage covers varies from plan to plan.
Does trip cancellation insurance covers hotels?
Yes, trip cancellation (as part of a trip insurance policy) can cover any pre=paid and non-refundable trip cost. Does trip cancellation insurance cover weather?
Yes, hurricanes and severe weather can be covered for trip cancellation. The important part is knowing the details. For example, you cannot cancel a beach trip because it is going to rain. Weather coverage with cancellation is for severe weather that causes flights to be canceled or resorts to be closed.
In addition, some plans cover NOAA Hurricane Warnings which extends coverage to a mere warning, as opposed to an actual hurricane strike, Does trip cancellation insurance cover pregnancy?
Yes, some plans cover pregnancy as a covered reason for cancellation. The pregnancy must occur after the purchase of travel insurance. Does trip cancellation insurance cover pre-existing conditions?
Yes, many plans include a waiver to the pre-existing conditions exclusion, making it possible to get cancellation coverage even with a pre-existing condition. Does trip cancellation insurance cover for any reason?
No, a standard trip insurance plan has a list of covered reasons. This covers common things like illness, accident, death in the family, weather, jury duty, terrorism, etc.
There are plans that offer a Cancel For Any Reason upgrade. This will reimburse trip costs up to 75% if you cancel for any reason.
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.