If you are investing in travel during a pandemic, one of the best ways to protect your vacation dollars is to purchase an insurance policy.
Not all insurance policies are created equal and having the right one could mean the difference between getting your money back or not.
InsureMyTrip is recommending travelers who are thinking about investing in a vacation this summer consider “cancel for any reason” policies.
Even cancel for any reason policies have some stipulations that travelers must follow in order to guarantee that they are refunded.
InsureMyTrip provides examples of how travel insurance works:
Example 1: A traveler is having second thoughts about going on vacation after a new hot spot for COVID-19 emerges. Her family vacation costs $4,000.
Q: Can she back out of the trip and still get her money back? The traveler has travel insurance that includes a cancel for any reason benefit.
A: Yes, if the traveler met all requirements and submitted the proper paperwork, she can expect to be reimbursed 50-75 percent of the non-refundable trip cost (the exact amount depends on the plan).
Example 2: A traveler wants to cancel his tropical vacation after a hurricane caused some mild damage to the area. He no longer wants to go.
Q: Can he back out of the trip and still get his money back? He paid over $2,500 for a flight, hotel stay, and an excursion. This traveler has standard trip cancellation coverage. No cancel for any reason coverage.
A: No. Standard trip cancellation wouldn’t apply. His resort was still open and flights were running as scheduled. The only opportunity to cancel a trip for reasons other than those listed as “covered reasons” on a policy is cancel for any reason coverage.
There are also other considerations a traveler should keep in mind such as making sure that the entire trip is insured, including all pre-paid, non-refundable trip expenses, and provide an accurate trip cost.
Cancel for any reason policies do cost more, but InsureMyTrip believes the best way to think of the price is to look at it as an upgrade.
Those purchasing this type of insurance usually need to do so within 14-21 days of booking their trip. They also should not expect to receive a full refund when filing a claim—usually, refunds are between 50 and 75 percent of the total cost, and travelers will need to file a claim.
Source: Read Full Article