Covid-19 And Hurricanes Puts Spotlight On Cancel For Any Reason Travel Insurance

InsureMyTrip recommends that summer travelers consider "cancel for any reason" travel insurance coverage. This specific coverage guards against covid-19 related travel concerns as well as storm threats this hurricane season.

"As travel restrictions wane, travelers want maximum flexibility when it comes to trip cancellations," says InsureMyTrip Director of Marketing & eCommerce Cheryl Golden. "We highly recommend that all travelers — including those booking domestic trips —  consider the cancel for any reason upgrade."

How Cancel For Any Reason Travel Insurance Works

Example: A traveler is having second thoughts about going on vacation, after a new hot spot for covid-19 emerges. Her family vacation costs $4,000.

Q: Can she back out of the trip and still get her money back? The traveler has travel insurance that includes a cancel for any reason benefit.

A: Yes, if the traveler met all requirements and submitted the proper paperwork, she can expect to be reimbursed 50-75 percent of the non-refundable trip cost (the exact amount depends on the plan).

Example: A traveler wants to cancel his tropical vacation, after a hurricane caused some mild damage to the area. He no longer wants to go.

Q: Can he back out of the trip and still get his money back? He paid over $2,500 for a flight, hotel stay, and excursion. This traveler has standard trip cancellation coverage. No cancel for any reason coverage.

A:  No. Standard trip cancellation wouldn't apply. His resort was still open and flights were running as scheduled. The only opportunity to cancel a trip for reasons other than those listed as "covered reasons" on a policy is cancel for any reason coverage.

Here's some other important considerations when considering cancel for any reason coverage:

• It's usually optional. Think of it as an upgrade to a standard comprehensive travel insurance plan.
• Entire trip must be insured. That means the traveler must add up all prepaid, non-refundable trip expenses and provide an accurate trip cost.
• Yes, you'll pay more. Generally, plans that include a cancel for any reason benefit do tend to cost more. It may run an additional 40-60 percent more than a standard plan.
• You still must file a claim. Any time reimbursement is requested from a travel insurance company, paperwork must be filed.
• Procrastinators miss out. That's because travelers must purchase this coverage within 14-21 days of making an initial trip payment or deposit.
• No last minute cancellations. The trip must be canceled no less than two days prior to departure.
• Don't expect all your money back. Reimbursement is usually 50-75 percent of the entire prepaid, non-refundable trip cost. The exact reimbursement percentage depends on the plan purchased.
• Not available in all states.

Bottom line: Travel insurance plans with the optional "cancel for any reason" coverage offers the most protection for travelers who may want to cancel a trip due to covid-19.

While some standard trip cancellation policies may cover a physician-ordered quarantine or contracting the virus (unless pandemics are specifically excluded), it will not cover covid-19 related cancellations due to fear of travel or any government-ordered border shutdowns.

Travelers can visit the Travel Insurance & Coronavirus resource hub for more information on cancel for any reason coverage.