Covered Reasons: Understanding Travel Insurance Plans

  • Julia Peterson
| Dec 05, 2018

So, something came up and now you have to cancel your flights. Bummer. At least you’re covered under your travel insurance plan!

Did you know many travel cancellation insurance plans include covered reasons that let you cancel or interrupt your trip and receive a refund for your prepaid trip expenses? That’s right — with most variations of insurance for travelers, you can’t just cancel for any reason.

Protection with Covered Reasons 

Covered reasons in our RoundTrip plans include:
•    Sickness or death of a family member, traveling companion, or yourself.
•    Natural disaster causing a long delay on your departure, or causing damage to your home.
•    Getting into a traffic accident on the way to the airport.
•    Involuntary layoff or job termination.
•    And more!

The most important thing is to find the covered reasons portion of your RoundTrip travel insurance plan and see what situations will allow you to cancel. Keep in mind some of these covered reasons may have their own limitations. For instance, you may be able to cancel for an illness if that illness is new, or has recently worsened, but not if it was pre-existing. Plans will include exclusions as well, such as pregnancy or hazardous sports.

Check with your agent or customer service representative if you have questions about these limitations. They may affect when you plan to go on your trip, or what you plan to do on that trip.

Cancel for any Reason

On some plans, though, you have the option to buy Cancel for Any Reason (CFAR) coverage, which will reimburse you for 75% of your prepaid and nonrefundable trip expenses. This coverage lets you cancel for any reason at all if you meet the requirements. Here are the requirements for our RoundTrip Elite plan.

They are very similar to other plans available in the market:

•    You must cancel the trip 2 days or more before your departure date. 
•    You must insure all nonrefundable prepaid trip costs within 20 days of your initial trip payment/deposit.
•    You must insure the nonrefundable cost of subsequent travel arrangements within 15 days of the payment/deposit for those arrangements.

CFAR can be a lifesaver if you are concerned you may need to cancel for a reason not listed in the policy.

Ask for Help

If you’re able, wait to cancel a trip until you’ve checked the covered reasons. If you’re not certain the reason is covered, contact our customer service team and ask. They can help you make an informed decision.

And, as always, if your claim has been denied, check your plan document to see if you can understand where your situation may have fallen in the exclusions or limitations.

Travel Insurance is a Smart Investment

Travel insurance is an affordable option to protect your trip expenses, medical expenses that could occur during your trip, and your personal belongings. You are making a wise decision when you buy a travel insurance plan. 

That being said, insurance plans can be difficult to understand at times. That’s why it can be helpful to talk with our sales team to ensure you choose the best plan for your situation. If you have questions, contact our sales team via email at sales@sevencorners.com or by phone at 800.335.0611.

Happy Travels to You!

About the Author
Julia Peterson

Julia Peterson joined the Seven Corners Customer Service team in February 2016. She is known as a writer and photographer, an extrovert, and master of the Rubik’s cube. She works from home in Michigan where she lives with her husband and her orange, half-blind cat, Murphy.

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