What will travel insurance cover?
Travel insurance policies cover natural disasters such as a volcano, but for coverage to kick in, there must be a significant delay or cancellation to a flight or a mandatory evacuation or property damage rendering lodging uninhabitable.
But because of the volcano’s remote location—and the fact that it hasn’t disrupted travel for most tourists venturing to the Big Island—travel insurance coverage will be limited in this case, said Steven Benna, marketing specialist for travel insurance provider Squaremouth. “Fear or loss of enjoyment in your destination is not going to be covered,” Benna said.
Some policies will cover cancellations for any reason, but these policies are more expensive. Moreover, travel insurance generally will only cover outright cancellations—so if a consumer chose to rebook their visit to Maui in lieu of the Big Island, for instance, insurance wouldn’t cover that.
Moreover, people planning trips in the coming weeks would have needed to purchase travel insurance before the eruption began on May 3 to have their travel covered. “Travel insurance is largely designed for unforeseen events,” Benna said. “If it’s announced that a volcano is expected to erupt, some providers may consider the event to be foreseen so it could be too late to get coverage at that point.”
Read the full MarketWatch article online here: https://www.marketwatch.com/story/what-you-need-to-know-visiting-hawaii-following-the-kilauea-volcanic-eruption-2018-05-09