What Is Trip Cancellation Insurance?
Nothing is guaranteed in life; therefore, it is better to be prepared for unwelcome and unexpected circumstances. Travel insurance covers financial losses and medical expenses while on vacation. Most of the people purchase travel insurance due to associated trip cancellation benefits. Nevertheless, most of them do not have a proper understanding of what is trip cancellation insurance and what all is covered in it.
In trip insurance plans, a wide range of companies offers a plan named trip cancellation insurance. Most of the families pre-pay for expenses like plane fare, reservation of best hotels , and tickets, and canceling the trip could be a huge loss to them. This is where the trip cancellation insurance is helpful. In many situations, this policy might reimburse you for reservations or tickets. Before filing for a this insurance claim, make sure you understand the coverage and benefits covered in it. Here is all you need to know about trip cancellation insurance.
What is Trip Cancellation Insurance?
Trip cancellation insurance is available in almost all companies when buying a travel insurance policy. The benefit of the trip cancellation is that the travelers who have to cancel their trip for a qualified reason might get the reimbursement of their non-refundable fees with the help of travel insurance claims. Below mentioned are some of the qualified reasons:
- Natural weather occurrence at the place you are planning to visit
- Death of any family member, travel companion, or the traveler
- Legal obligations
- Any injury or accident before the trip
Nevertheless, other important situations like unexpected life events, obligations of employment, or any other personal situations might not be included in the convention benefits of trip cancellation insurance. If you are concerned with these situations, then you need to add other benefits to the plan.
What Reasons Are Covered in Travel Insurance?
Covered reasons refer to the specific events and situations when they occur; they make you eligible to claim benefits. Above mentioned are some of the situations that are included in the coverage of trip cancellation insurance.
There are varied life situations that might lead you to cancel the trip like veterinary emergency or winter storm season. Travelers might have different reasons to cancel the trip. A trip cancellation insurance might not cover these specific situations, but there is a “Cancel for Any Reason” benefit that you can add to get non-refundable costs of the trip. Instead of having any other travel insurance, securing the complete cost of the trip is beneficial.
Does trip cancellation insurance consider work reasons?
Some trip insurance cancellation plans might include certain employment situations. Travelers who are suspended unexpectedly without any fault might be able to the non-refundable deposits.
Nevertheless, other situations are not necessarily covered in the insurance. Reasons like canceling a trip for starting a new job might not be covered in the trip cancellation insurance.
If you think that you might have to cancel the tour due to work reasons, then you can purchase the add-on benefit of canceling the trip for work reasons. Adding the benefits of Cancel for Work Reasons would add extra fees to the policy. The clauses of adding it to trip cancellation includes:
- You are canceling the trip because the company has relocated you over 250 miles
- Your company is involved in a merger or acquisition
- You gen an unforeseen emergency situation like vandalism or fire
- There is any change in your work schedule due to which you have to work during the time when you planned the trip
Trip insurance cancellation might sound like a good idea or a free pass to cancel the journey or travel, but before canceling the trip, make sure to understand what your trip cancellation insurance covers.