In an ideal world, vacations would be blissfully carefree and relaxing. And fortunately, in most cases, they are. However, there is always a risk something can go wrong to disrupt your plans either before or during your trip. Insurance for vacations is becoming more common as the number of individuals traveling after the pandemic has risen. Here are the top things you should know about travel insurance before you purchase it.
What Is Insurance for Vacations?
Travel insurance is a type of insurance for vacations. If you have ever booked a trip, you may have seen it as an add-on option. These insurance policies allow you to be reimbursed for some expenses if you have to cancel, or for certain covered events. Travel insurance protects travelers from lost or delayed luggage, trip cancellation fees, missed airline connections, or medical emergencies.
Lost Luggage
As the name suggests, the lost luggage coverage under a travel insurance policy will reimburse you for any lost or stolen baggage while traveling. Depending on the company and what is offered, you can be reimbursed anywhere from $750 to $2,500 for the depreciated value of your lost items. While having this type of coverage is beneficial, it may not be necessary if you have a homeowners’ or renters’ insurance policy. Some homeowners’ or renters’ policies may cover your luggage and personal items while traveling, although it is essential to check your policy first.
Delayed Luggage
Like lost luggage, delayed luggage coverage can be provided as part of your vacation insurance. This coverage will reimburse you for any reasonable incidentals you may need to purchase if your bags are delayed. For example, if you needed to buy a set of clothes, a toothbrush, toothpaste, and other toiletries while waiting for your bag to be returned, this coverage would pay for those items. It is important to note airlines also offer some coverage for delayed luggage. However, they may have longer waiting periods for your bags to show, such as up to two weeks in some cases. Travel insurance may be worth purchasing if you are concerned about your bags being delayed and if your airline has a more extended wait period.
Trip Cancellation
There may be times when you need to cancel your trip due to unforeseen circumstances. For example, perhaps there is a death in your family, and you need to cancel. Travel insurance will reimburse you for the pre-paid portion of your trip, even if the airline or hotel package is non-refundable. This may be worth purchasing to ensure you do not lose any money if you need to cancel in an emergency. While most travel insurance policies will not cover COVID-related cancellations, some may. Be sure to check with your insurance company to confirm.
Missed Airline Connections
Travel insurance can reimburse you for rebooking if you miss your connecting flight. The covered reasons for missing a flight are specified in each policy, and can vary depending on the company. This type of coverage is worth purchasing if you have a short layover during your flight and are concerned about boarding on time.
Medical Emergencies
Coverage for medical emergencies is one of the most significant benefits of buying insurance for vacations. Believe it or not, most health insurance policies will not provide coverage outside the United States. If you are sick or injured outside of the country, you could be left with a hefty medical bill, especially if you require hospitalization or costly treatments. A travel insurance policy covers you for doctor visits, hospital bills, X-rays, lab work, or ambulance services up to your policy limits. Having coverage for medical emergencies is worth purchasing travel insurance, regardless of where you are going, especially if you travel internationally.
Final Thoughts
While it may often be regarded as frivolous, purchasing insurance for your vacation is a worthwhile investment. It is especially advantageous if you are traveling outside the county, in a hurricane or other natural disaster-prone area, or have planned numerous non-refundable activities. To learn more, contact a local independent agent in your area who can get you a quote for a travel insurance policy. You will be glad you did!
