When searching for travel insurance, your trip cost in any prepaid and non-refundable trip expenses, including airfare, hotel accommodations, cruise payments, tours, and excursions, as well as any other costs that might be forfeited if a trip has to be cancelled or interrupted.. Because travel insurance policies are reimbursement-based, receipts will be required when filing a claim. It’s important for travelers to calculate an accurate trip cost.
The cash value of arrangements that were booked using miles or points should not be calculated in the trip cost. However, if the trip is cancelled, there may be a fee to either change the dates of travel or re-deposit the miles or points. The amount of that fee can be included under the trip cost.
Travelers typically have the option to insure all, some, or none of their trip cost. However, the trip cost should be accurate, because some policy benefits such as Pre-Existing Condition coverage, Cancel For Any Reason, and Cancel For Work Reasons, to name a few, mandate that the traveler insure 100% of their prepaid and non-refundable costs of the trip.
If the exact trip cost is unknown, the amount can be estimated, but it is wise to round up in order to avoid being precluded from the previously mentioned coverage benefits. If travel insurance is purchased based on one trip cost and then additional arrangements are booked, then the policy can be updated to reflect the new trip cost and any difference in premium cost can be settled at that time, as long as it is before the departure date.
Always refer to the certificate of insurance for details.