Many travelers opt to forgo travel insurance because they are under the impression that this type of insurance is a waste of money. Generally speaking, this is simply not true. In fact, travel insurance can be a lifesaver in the case of sudden cancellation (to cover flights and hotel costs), medical emergencies (to cover foreign hospitalization), lost or damaged baggage and even major calamities like natural disasters and terrorism. All of these insurance packages can be purchased individually, but Insurance for travelers is typically purchased in combination packages. Travelers that purchase single packages typically purchase medical insurance or baggage insurance to insure a particularly valuable luggage item.
For travel insurance to cover hotel costs, you will need to purchase trip cancellation and interruption insurance. Trip cancellation is when the traveler does not go on the trip at all. In this case, all non-refundable expenses will be covered by the cancellation insurance. Trip interruption occurs when travelers must leave early or cancel some portion of their trip as the trip is in progress. In this case, travel interruption insurance covers the portion of the reservation that has not yet been used. Travel insurance will never cover hotel stays that are used and enjoyed, but it may cover hotel reservations that are interrupted or abandoned. For travel insurance to cover hotel costs, the reservations must be made prior to purchasing the insurance, typically in some sort of travel package that includes travel, accommodation and activities.
For most insurance companies, the following reasons are considered acceptable reasons to cancel a trip: if any member of the traveling part cannot travel due to sickness, injury, death in the family, or other acceptable deterrents; if the airline, hotel, or travel company goes out of business or otherwise can’t perform as promised; if a non-traveling family member gets sick and forces the traveler to cancel. Finally, if members of the traveling party miss a flight due to weather, car accident, strike, unforeseeable traffic, or any other legitimate reason that can be documented, then the insurance company will refund the cancellation.
Likewise, travel insurance will typically cover trip interruption for similar reasons. Medical emergencies are the most common reason for trip interruption. Medical emergencies pertain to both the traveling parties and family members at home. Many travelers that purchase cancellation and interruption travel insurance often purchase evacuation insurance to cover sudden evacuation. Evacuation insurance will cover all travel costs if travelers need to evacuate In the event of natural disaster, political strife, or medical emergency. Like all insurance, travel insurance is something that you buy and hope that you don’t have to use, but you will regret not having it if something bad happens.
