Travel insurance prior to and during the COVID-19 pandemic has become challenging for many.
Unsuspecting travelers who had to cancel plans with lodging companies such as AirBnb, Vrbo, and ski resorts have encountered many difficulties in being reimbursed through travel insurance purchased for their canceled trips.
Now, concerns regarding travel insurance have increased as 2021 begins. Many are wondering if COVID-19 will be covered and if there will be restrictions in place with regard to pandemic cancelation coverage.
Because of this, some of the most important things that travelers should consider before purchasing travel insurance include:
When making the decision to purchase any type of insurance, policy details should be thoroughly assessed. With the pandemic, it’s more important than ever to thoroughly review travel-related policies in their entirety.
No traveler should assume the pandemic is included within any type of insurance policy. This is especially true when it comes to travel insurance.
While most travel insurance policies in effect in early 2020 did not specifically include coverage for cancelations related to COVID-19 or pandemic events, much of that has changed, as several travel policies are now opting to include pandemic coverage.
Even policies that do cover COVID-19 can treat the risks associated with the virus differently, leaving it up to the insured to make sure their policy covers their trip costs.
For instance, in most cases, travel insurance includes medical benefits, which can include emergency evacuation coverage and cover certain medical costs; however, the policy may not cover costs related to transporting someone home in the event of a medical emergency.
Just as with making any other purchase, it’s important to compare the available options before making a decision.
In most cases, when comparing insurance rates it’s important to remember the rates only reflect the cost of the trip and the ages of those traveling.
Typically someone who is older is going to pay more than a child.
Understanding “Cancel For Any Reason”
“Cancel for any reason” (CFAR) policies have come to light during the COVID-19 pandemic. These provisions allow for cancelations up until two days prior to departure and can offer up to 75% reimbursement of the cost.
There are less expensive options that offer a 50% reimbursement. These provisions come as add-ons to other travel insurance plans and could add further costs on top of the initial travel insurance purchased.
CFAR policies do have other limitations as well. For instance, a traveler typically cannot purchase solely CFAR, as it is offered as an upgrade when purchasing a primary travel insurance plan.
Additionally, not every travel insurer will offer CFAR as a policy add-on. In the event a traveler accepts a voucher credit from a hotel or airline for a canceled trip, the claim may be ineligible for CFAR insurance reimbursement.
Travel Insurance Claim Denial Attorneys
While the inclusion of COVID-19 concerns in travel insurance policies is a good thing, those who had travel plans in 2020 have been unable to receive proper compensation.
Despite the pandemic being a viable reason to have travel insurance, many insurers have refused to pay out claims, leaving policyholders to suffer the financial loss.
At Raizner Law, we have extensive experience dealing with insurers wrongfully delaying, underpaying, or denying valid claims.
If your travel insurance claim has been underpaid or denied, you may be able to pursue litigation in order to obtain full monetary compensation. Contact Raizner Law today to learn how we can best assist with your claim.