Understanding the Basics of Home Insurance

Learn how home insurance protects your property and belongings from unexpected risks and disasters.

Most travel protection plans feature coverage for Trip Cancellation; in fact, this benefit is one of the main reasons travelers purchase a travel protection plan in the first place. This coverage can save travelers thousands of dollars in expenses should an unpredictable and plan-altering situation arise prior to departure on the trip.

What is the Trip Cancellation part of travel protection plans, anyway?

Trip cancellation coverage is generally activated in the following scenarios:

• Injury, sickness or death of you, a family member, or traveling companion (or business partner, on some plans) before departure.
• Inclement weather or a strike affecting service by your airline, train, cruise ship or other carrier.
• A new terrorist incident occurring within 30 days of your departure date in a city on your itinerary. (Benefits not provided if the Travel Supplier offers a substitute itinerary.)
• Requirement to serve on a jury or as a witness in a trial.
• If your or your traveling companion’s home or destination becomes uninhabitable during the time of your scheduled trip by fire, flood, burglary or other natural disaster.

Many plans offer coverage beyond what is listed above, possibly to include financial default of a travel supplier, involvement in a motor vehicle accident, or termination/lay-off from employment. As with any insurance coverage, read your policy document carefully to understand exactly what coverage you have and to understand the terms, conditions and exclusions of any benefit or plan.

Single Occupancy Supplement

A benefit related to Trip Cancellation, the Single Occupancy Supplement provides coverage if your travel companion has to cancel, delay or interrupt their trip for a covered reason, so you wouldn't be responsible for the cost associated with changing the per person occupancy rate.

Real Life Applications

One of our customers John (name changed for privacy) purchased the travel insurance with Trip Cancellation coverage when he booked his trip to the Panama Canal with his wife. Unfortunately, John was admitted to the hospital with chest pains days before their scheduled departure. Since this hospital stay was not related to a pre-existing condition he was able to file a claim under the Trip Cancellation benefit. The policy reimbursed the total trip cost of $25,990 for both he and his wife.