Here’s how travel insurance typically handles trip cancellations:
- Covered Reasons are Key
- Most policies cover cancellations due to unforeseen circumstances outside your control. Common covered reasons include:
- Illness or injury (affecting you, a traveling companion, or a non-traveling family member)
- Death of a close family member
- Natural disasters at your destination or home
- Severe weather preventing travel
- Unexpected events like mandatory jury duty or a sudden job loss
- “Cancel for Any Reason” upgrades offer more flexibility but typically reimburse only a portion of your costs (like 50-75%).
- The Process
- Notify Your Trip Providers:Â Immediately contact airlines, hotels, tour companies, etc. to try and get refunds or rebook for a later date.
- Contact the Insurance Company:Â File a claim with your travel insurance provider as soon as possible.
- Documentation:Â Be prepared to provide evidence supporting your cancellation reason:
- Doctor’s notes for illness or injury
- Death certificate
- Weather reports
- Proof of jury duty or job termination
- Waiting and Review
- Claims Review:Â The insurance company assesses your case to verify it falls under covered reasons and the terms of your policy.
- Waiting Period:Â Some policies might have a short waiting period before you can file a cancellation claim.
- Reimbursement
- Approved Claim:Â If your claim is approved, you’ll be reimbursed up to the policy’s coverage limit for your prepaid, non-refundable trip expenses.
- Denied Claim:Â If the reason is excluded or you lack proper documentation, your claim could be denied.
Things to Know:
- Timing Matters:Â File your claim quickly! Most policies have deadlines for submitting cancellation claims.
- Get it in Writing:Â Keep records of all communication with trip providers and the insurance company.
- Limits and Deductibles:Â Pay attention to your policy’s specific limits for trip cancellation and be aware of any deductibles.