What you need to know about travel insurance

Let’s clarify some misunderstandings about travel insurance, shall we?

The most common misconception is that travel insurance pays your expenses up front if your return trip home is delayed.  It does not.  You pay out of pocket for your expenses and file a claim for reimbursement upon your return home.

If your reason for the delay is a “covered” reason, your expenses will be reimbursed.  If your reason for the extended stay is not a “covered” reason, you will be denied reimbursement.

By the way, if you are ill with covid it is covered, just as with any other illness that delayed your return home would be.  Documentation is critical to reimbursement.

If you complete the claim form inadequately or improperly you will be denied.  Save every single receipt, document every single expense, and complete the claim form paying close attention to each detail.   Obtain as many supporting documents as possible to support your claim and the reason for the delay.

The policy says “cancel for any reason” and you assume you can cancel for any reason and get a refund.  You cannot.  If you cancel for a “covered” reason you will get a refund.  If you cancel for any other reason (fear of covid, for instance, is not a covered reason) you will receive a future travel credit.

Changing entry requirements are also not a covered reason.  If you booked a trip when a negative covid test for entry into the country was not required, and then by the time you leave for the trip a negative covid test is a requirement, you cannot cancel for a refund due to that change in policy.  The good news is you will receive a future travel credit minus the cost of the insurance if that change in policy is your motivation for canceling your trip. 

Future Travel Credits are usually good for one year, and they are divided equally in the name of each passenger.  If your trip (for two people) was $3400 total cost, and the insurance part of the cost was $200, you lose the cost of the insurance.  You have a future travel credit of $3200, divided equally between both passengers, $1600 per person.

There are cash back policies, but since COVID those are tripled and quadrupled in price.  Most of our customers are not worried about getting cash back, they simply don’t want to lose their money should they have to cancel prior to departure.  If it’s important for you to have a cash back policy, let us know at the time of booking.

Do you think “fear” is covered?  It isn’t.  Not fear of war, fear of covid, fear of riots or civil unrest.  Even acts of terrorism are not covered unless they have happened within a specific time frame and within a specific mileage range from your destination.

I have some great news.  If you have a Letter of Credit with the Globus Family of Brands, and you can’t use them within the time frame (two years), you can gift or sell them to someone else.  In fact two of my customers recently sold theirs to other customers who then applied them to existing trips.  Win/win.

Every type of trip and every supplier offers different polices with different coverages.  In fact there is one supplier we no longer use because their insurance does not include any medical benefit.  If you become ill in destination we want you to have insurance that covers it.  But, again, you pay the expense out of pocket and file a claim for reimbursement upon your return home.

Insurance has always been an important component to any vacation package, but especially today, it’s an imperative component, a complicated component, and one that’s important to discussed thoroughly with your travel advisor.

Your Globetrotting Friend,
JOY