Kiplinger, April 29 2016 – Travel Insurance to Protect Your Vacation

Published by Megan Singh May 2, 2016

Searching a weeklong trip to Peru on Delta.com produced a trip insurance add-on for $50. But it limits medical coverage to $10,000 and evacuation to $50,000, and will reimburse cancellation expenses for fewer reasons (and only up to the cost of the $668 plane ticket). Searching for a policy on comparison site Squaremouth.com for the same itinerary produced similarly priced plans with broader coverage, including ones with at least $50,000 in medical coverage and $100,000 for evacuation.

Spooked vacationers are increasingly looking to travel insurance to soothe their worries about terrorist attacks and diseases such as Zika. But even if your policy includes terrorism coverage, you’ll typically be compensated for canceling your trip only if the attack occurs in or near a city on your itinerary (not just anywhere in the country), within 30 to seven days of your departure, and if it is deemed a terrorist attack by the State Department.

The same goes for travelers who are anxious about traveling to Zika-prone countries. Government or CDC warnings related to disease outbreaks are not considered valid reasons to suspend your trip. However, you’ll still be eligible for medical coverage if you contract the virus during your travels.

To assuage your fears, you would need a “cancel for any reason” rider, but these upgrades are not a great value. The rider typically increases the price of your policy by 50% and will reimburse you for only about 75% of trip costs. “We don’t recommend it unless travelers come to us with very specific concerns we know won’t be covered,” says Megan Singh, project management director at Squaremouth.com. Plus, you must still cancel two or three days before your trip is scheduled to begin.

Read the full article online at Kiplinger: http://www.kiplinger.com/article/insurance/T059-C000-S002-protect-your-vacation-fund-with-travel-insurance.html