Many travelers encounter claim denials, often leading to negative perceptions of travel insurance. However, these denials frequently stem from unrealistic expectations or misunderstandings about policy coverage. It’s crucial to thoroughly understand what your travel insurance policy covers and, equally important, what it excludes.
Consider the unfortunate case of Carol (Ret.), whose claim was denied because her loss resulted from fraud, an exclusion commonly found in travel insurance policies. While seemingly unfair to the defrauded individual, such exclusions are standard practice. Similarly, losses arising from pandemics are often excluded, although many companies now offer specific “covid coverage.” However, even with “covid coverage,” careful examination of the policy details is essential to understand the exact inclusions.
Another traveler experienced a claim denial for covid-related expenses despite having a policy that included “covid coverage.” This individual, on a Rick Steves tour, tested positive for covid and was required to isolate, leaving the tour. While they received a refund for the pro-rated cost of the missed tour days, their claim for additional lodging, food, and transportation expenses was denied. The reason? Since the cost of the tour for those days was refunded, there was no insured actual loss. The insurance covered the cost of the tour, which was reimbursed; therefore, no further compensation was due.
These examples highlight the critical need to scrutinize your travel insurance policy and carefully consider your desired coverage. Understanding the nuances of your policy is paramount to selecting the Best Travel Insurance Company and ensuring your peace of mind while traveling.
On a positive note, we have had two successful claim experiences with prompt payouts for trip cancellations due to illness or injury affecting ourselves or our travel partners. Both instances involved travel within Canada, and one policy was with Berkshire Hathaway Travel Protection. While the other insurer is not recalled, these experiences underscore that travel insurance can indeed be beneficial when you choose the right policy and understand its terms.
