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If you’re planning a vacation, you’ve probably been dreaming about and saving for this trip for months. It may seem like nothing stands between you and your long-awaited days of leisure in a beautiful and fun locale. But, things can and do happen that cause vacation cancellations. If you don’t have vacation insurance, you are likely to lose most of — if not all — the money you have invested.
Vacation, or travel insurance, as it’s often called, is available through insurance brokers, travel agents, and websites where you book rental cars, hotels, cruises, and other excursions. Typically, the cost is minimal compared to what you would lose if something caused you to cancel your trip.
Shop around to find the right policy. Many cover a multitude of issues that could arise, and others only cover a few items.
Most types of vacation insurance cover things like out-of-pocket medical costs. If you get sick while on a trip, it helps cover expenses that your medical insurance policy may not cover because the facility is out of network, for example.
Evacuation is another issue that travel insurances often cover. This comes in handy if you’re in a foreign country that experiences political unrest or a natural disaster occurs, such as a hurricane or earthquake.
Travel or vacation insurance also cover your baggage, whether it is lost, stolen, or destroyed. This helps cover the costs of replacing your clothing, jewelry, shoes, and accessories that were in the luggage.
Cancellations are common and can be covered. This could be due to an illness that prevents you from traveling, a death in the family, or some other unforeseen event. It can even cover circumstances such as the travel agency going bankrupt, or a missed plane.
Read the exclusions on your travel policy before purchasing it. For instance, an illness must be confirmed by a medical professional. Also, preexisting medical conditions wouldn’t be covered. Bad weather, changing your mind or deciding the trip is too expensive are all reasons that aren’t covered under vacation insurance. There are vacation insurances that cover cancellations due to ‘any reason,’ but these tend to be quite pricey.
Check the insurance policies on your health or property. They may have special riders that cover losses during travel. Check perks on the credit cards or group memberships you’re involved in. One of the perks may be complementary travel insurance.
Vacation insurance is a small price to pay for peace of mind. It helps ensure that your losses are minimal if an unfortunate emergency occurs.