Travel Cancellation/Interruption Insurance (TCI) reduces the worry associated with having to cancel your vacation. Travel insurance covers any prepayments and deposits you are unable to recover from your travel agency. Investing in travel insurance allows you, for a small percentage to try another day to make that trip.
The number one thing to watch for with travel insurance coverage is that compensation is payable for a “covered” medical reason or a “named peril” event. If your reason for cancellation is covered under the policy, the policy will pay. The following list are some limitations:
- Work – Most policies will not compensate you if you have to cancel for a work-related reason.
- Natural Disasters vs. Weather – Natural disasters are generally covered, but weather often is not.
- Sickness and Accident – Policies sometimes exclude coverage for pre-existing conditions, but if you buy the policy at the time that you pay for your trip, that exclusion may be waived.
- Terrorism – In general, policies do not reimburse cancellation for terrorism unless an overt terrorist attack has occurred in your specific destination within a few weeks of your planned arrival.
You can purchase a travel insurance policy that allows you to cancel for any reason. Broader coverage comes at a higher premium, but an “any reason” policy can provide flexibility when you are in need.