Does Travel Insurance Cover Terrorism?
Yes, as Long as You Buy the Right Policy; Ed Perkins Explains
Travel Insurance Loopholes
Other Reasons: Travelers face similar restrictions for other non-sickness cancellations. For example, most policies won't allow you to cancel because of an impending hurricane unless and until it actually hits your destination, or at least until the National Weather Service issues a hurricane warning for the destination. Some companies waffled on compensation for the Icelandic volcano ash problem as they tried to decide whether the event was a "natural disaster," which is typically a named peril, or "weather," which typically is excluded. And only a few policies compensate you if you have to cancel for a work-related reason.
Avoid the Hassle
Fortunately, you can avoid problems with covered reasons: Buy a TCI policy that allows you to cancel for any reason. Several companies sell policies with that option. With one of those policies, you call the shots completely: You can cancel even if you just wake up the day before departure and decide you'd rather just stay in bed for a couple of weeks.
Obviously, you have to pay extra for such broad coverage. Some companies charge stiff premiums; others limit any-reason compensation to just 75 percent to 90 percent of prepayments. And, as in the case of pre-existing medical conditions, you generally have to buy the insurance within a week or two of the time you make your first payment. Prices vary with your age and the nature of your trip, so deciding which approach is best for you is an individual decision. But any "any reason" policy provides a lot more flexibility than the more typical policy full of "covered reason' exclusions.
As is usual, I recommend you check with a few of the big online travel insurance agencies to decide which policy best suits your trip and your personal situation: 1travelinsurance
Do you have more information about this topic? If so, please click here to contact the editors of ABC News.
