Terrorism and Travel Insurance: What to Know Before You Buy, says Squaremouth

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ST. PETERSBURG, FL March 26, 2015 – In the wake of several recent terrorist attacks, travelers may have growing concerns about their safety. Squaremouth, America’s fastest growing travel insurance comparison site, explains what travelers need to know about travel insurance coverage for terrorism before buying a policy.

Terrorism Coverage Still Widely Available
Despite recent attacks tied to terrorist cells, travel insurance policies can still be purchased to include cancellation coverage for future terrorist attacks. However, before an attack is covered, it must meet specific criteria.

In general, an event must meet three major factors to be considered a “terrorist attack” in terms of travel insurance. Most insurance providers require an event be deemed as “terrorism” by the U.S. Department of State or the reasonable local authorities where it took place. In addition, it must have occurred at a time and place that would reasonably impact a traveler’s trip. Generally, this is a city listed on the traveler’s itinerary or within 120 miles of one, and within 30 days of their arrival.

In every case, a travel insurance policy must be purchased prior to the event, in order to have coverage for any losses related to it. If a traveler has purchased a policy prior to a terrorist attack, and the attack meets their policy’s definition of “terrorism”, they may be covered to cancel their trip and be reimbursed 100% of their nonrefundable trip costs.

Costly Coverage for Fear
Some travelers simply want the option to cancel their trip if they are uncomfortable traveling due to recent terrorist attacks or threats. While canceling due to fear is always excluded, some travel insurance policies offer an optional Cancel for Any Reason upgrade, which allows travelers to do just that.

In order to be eligible for this benefit, the policy must be purchased within 21 days of the first deposit date and must insure 100% of the trip cost. This benefit increases the price of the policy by about 40%, and provides up to 75% reimbursement of nonrefundable trip costs.

Despite the hefty price tag, it is the only option for travelers who want the flexibility to cancel out of fear, or if an attack doesn’t meet their policy’s definition of “terrorism”.

“As terrorist attacks become more frequent, we are seeing growing concerns from travelers looking for terrorism coverage,” said Squaremouth Director of Marketing, Megan Moncrief. “But before travelers jump to purchase a policy with the “terrorism” benefit, we urge them to make sure they really understand what they are covered for.”

To keep travelers up-to-date with travel insurance coverage related to terrorism, Squaremouth launched the Terrorism and Travel Insurance Information Center. This online resource is updated with official provider position statements, answers to frequently asked questions, and current government travel alerts and notices related to terrorist attacks.

About Squaremouth
Squaremouth.com compares travel insurance products from every major insurance provider in the US. Using Squaremouth’s comparison engine and customer reviews, travelers can research, compare and purchase insurance. More information: www.squaremouth.com.

Megan Moncrief