What are Trip Cancellation and Trip Interruption Insurance?
Trip Cancellation Insurance will reimburse you for the amount of pre-paid, non-refundable travel expenses (e.g. airline, cruise, train, hotel, etc.) that you have insured, should you cancel your trip before departure for an unforeseen covered reason.
Trip Interruption Insurance is similar to cancellation coverage, but covers you while you are on your trip for a list of covered reasons. In case of a covered reason you are required to return home, Trip Interruption Insurance will reimburse you for the lost portion of your trip, as well as any additional expenses for a last-minute flight home.
Trip Cancellation and Trip Interruption Insurance are often sold together as a bundle. You can also add Travel Medical Insurance to the bundle.
Are there any conditions not covered with Trip Cancellation and Trip Interruption Insurance?
Trip Cancellation and Trip Interruption insurance covers you for the perils listed in the Description of Coverage. This does not cover events known to you at the time you buy the insurance. In other words, if what was expected causes a claim, your claim will not be covered. It also does not cover things like getting detained by customs and missing your flight, cancelling because of a work obligation, and cancelling due to an illness or injury related to a pre-existing medical condition that is not covered.
Coverage for some pre-existing medical conditions is available under most Trip Cancellation and Trip Interruption Insurance policies, but the condition usually needs to be stable for a specific period of time prior to buying the insurance and it must take “a turn for the worse” after to qualify for coverage. Depending on the insurer, you may have to purchase your Trip Cancellation and Trip Interruption Insurance within a certain period of time before you depart – typically before the cost of what you are insuring is non-refundable (e.g. when cancellation fees for cruises or hotels take effect).