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the current COVID-19 Pandemic It has really impacted almost every aspect of my life. Since mid-March, travel demand has plummeted as most countries enacted laws encouraging citizens to stay home or quarantine. are choosing to
In response, airlines are canceling many flights and hotels are closing their doors. Many people whose flights and trips have not yet been canceled still feel uncertain about travel. So for those wondering if the travel insurance they purchased covers coronavirus, let’s take a closer look.
What is travel insurance?
Generally speaking, travel insurance is insurance that you can buy before you travel that will pay out if certain things happen during your trip. There are many different types of travel insurance, but they generally cover things like medical treatment, lost luggage, missed connections, and trip cancellations. There are three main areas where travel insurance can help you on your trip.
- medical insurance – Medical insurance can provide medical expenses if you get injured while traveling
- interruption of travel – Trip Interruption Cover covers costs incurred due to lost luggage, flight delays, etc.
- trip cancellation – Trip Cancellation Cover allows you to reimburse the cost of hotel, air tickets, or other travel coverage if your trip is canceled for a covered reason
Travel insurance can be purchased per trip or as an annual plan.
Does travel insurance cover coronavirus?
As with most contracts, whether travel insurance covers costs depends on the terms of the contract. And of course it can be hard to read and hard to understand. The World Health Organization (WHO) declared the COVID-19 situation a pandemic on March 11, 2020, so most insurers consider it a known and foreseen event. Therefore, most travel insurance companies will not cover most claims due to coronavirus. This applies even if you purchased a
Most people aren’t currently traveling, but even if you book a trip, don’t buy travel insurance in the hope that it will cover you if you ultimately decide not to travel. Similarly, if an airline or other travel agency cancels a flight, travel insurance will generally not reimburse the associated costs. However, it is true that most airlines are currently refunding customers the full amount for canceled flights.
When Travel Insurance Can Cover Coronavirus
There are several reasons travel insurance covers items related to the current coronavirus pandemic. cover the Usually, you will need to provide proof of a medical diagnosis. Additionally, if you have travel insurance with medical coverage, your insurance may cover you if she catches COVID-19 while traveling.
Another case where travel insurance may cover coronavirus-related disruptions is if you were traveling before March (when the WHO classified COVID-19 as a pandemic). In that case, you may be able to claim travel insurance if your trip is affected. As always, check the policy details and contact your travel insurance company.
Cancellation for Any Reason (CFAR) Travel Insurance
So far, this article has covered standard travel insurance, which is the type of travel insurance most people buy. There is another type of travel insurance called Cancellation for Any Reason, or CFAR insurance. As the name suggests, CFAR travel insurance allows you to cancel your trip for any reason and receive a portion of your out-of-pocket travel expenses. It’s usually 50% or 75% of the cost depending on what kind of CFAR coverage she purchased.
CFAR insurance typically has to be purchased at or near the time you first purchase your trip and costs about 25-50% more than traditional travel insurance. Therefore, it is currently not possible to purchase CFAR insurance if you have previously booked your trip. If you have purchased CFAR insurance, you must cancel your trip within 48 hours of your trip in order for your claim to be successful.
Some Travel Insurance Companies Covering Claims Due to Coronavirus
As such, most travel insurance policies do not cover coronavirus claims, although some insurers have made special exceptions. Most companies (airlines, hotels, Airbnb, and other travel providers) As with, insurers recognize that this is a truly unique situation and make exceptions. Please check with your insurance company to see if they are making any adjustments due to the current COVID-19 pandemic. Most insurance companies have pages dedicated to what they are doing because of the coronavirus. Here are the pages for the major insurance companies:
I wish you the best. Stay safe.
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