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When Terrorism Coverage Won’t Work

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Many travel insurance plans include coverage for terrorism.  This can include trip cancellation, trip interruption, emergency medical and medical evacuation.  Most plans require that the act of terrorism be within a set time from your scheduled trip departure, normally 30 days, and that the attack be in a city listed on your itinerary.  Travel Insured International wrote a blog post about several scenarios when terrorism coverage would not apply.

• You have already booked your trip to India and hear Mumbai might be a terrorist target. You want to cancel even though nothing happened yet.
• You are scheduled to travel to Mumbai, India, on May 15. The terrorist attack occurs on March 20. You want to cancel. The attack did not occur within 30 days of your scheduled departure so there is no coverage.
• You are scheduled to visit Mumbai, India, and a terrorist attack occurs in Goa, India. You are not scheduled to visit Goa so there is no coverage.
• Your prepaid itinerary does not include visiting Mumbai. During your trip you go there on your own. A terrorist attack occurs while you are there. There is no coverage. You did not include Mumbai in your prepaid plans.

Always read the certificate of insurance carefully, in order for a claim to be paid for trip cancellation or trip interruption, it must be one of the specific covered reasons.  For example, an act of terrorism and an attempted act of terrorism are not the same thing.  Most companies require the US State Department to declare an event an act of terrorism in order for coverage to apply.

Source:  Travel Insurance for Terrorism: Saving Your Wallet and Your Life