What Are Covered Reasons in Travel Insurance?
Becky Hart | Apr 3, 2023
So, something came up and now you have to cancel your trip. Are you covered by your travel insurance*?
It’s a common misunderstanding that if you cancel your vacation, trip protection will automatically reimburse you for everything. The truth is that, in order to receive a refund through your trip protection plan, the cancellation must be for a covered reason.
All too often, travelers are frustrated when a claim is denied because they didn’t realize that you can’t cancel or interrupt your trip for any reason. Understanding the covered reasons listed in your trip protection plan can help when travel goes sideways. Let’s get started.
Trip Protection with Covered Reasons
Covered reasons in Seven Corners Trip Protection plans that allow you to cancel or interrupt your trip include events such as:
- Sickness, injury, or death of a family member, traveling companion, business partner or yourself.
- You or your traveling companion’s primary residence or scheduled destination accommodations are made uninhabitable and remain uninhabitable during your trip.
- You or your traveling companion are directly involved in a traffic accident, while en route to your scheduled trip departure city.
- Involuntary layoff or job termination.
(Additional terms apply to each of the reasons above, so — and we can’t say this enough — check your plan document or contact us for more details.)
There are many more covered reasons provided by our trip protection plans than what’s listed above. Find the covered reasons portion of your plan document and see what situations will allow you to cancel and still get a refund. Keep in mind some of these covered reasons may have their own limitations such as time limits, and all are subject to the plan’s limitations and exclusions.
We recommend you read through the list of covered reasons in the plan document so you understand what they are and how they work.
Cancel for Any Reason
If you’re looking for more flexibility or more robust coverage, you have the option to add Cancel for Any Reason (CFAR) coverage to some plans. This benefit allows you to cancel your trip for any reason you wish, not just for the covered reasons listed in your trip protection plan document.
Adding CFAR will increase the cost of your plan by about 40% to 70% depending on the travel insurance provider, and it typically reimburses you for 75% of your prepaid, nonrefundable trip expenses if you decide to cancel your trip.
Why would you buy CFAR?
Many travelers found CFAR coverage to be helpful during the COVID pandemic. They planned a trip but were worried that they’d change their mind about traveling closer to departure. Maybe the infection rate was a little too high for comfort or they didn’t want the hassle of following their destination’s COVID protocols. A change of heart is not a covered reason with Seven Corners Trip Protection, but it is with CFAR.
Flexibility is one of the greatest advantages of CFAR. One Seven Corners team member added it to his plan when he planned a springtime cruise. There was a chance his alma mater’s basketball team would make the Final Four and he didn’t want to miss a historic game, so he purchased CFAR for his cruise.
Other people add CFAR when they plan to attend a destination wedding several months in advance. You never know what could change in the interim, so CFAR gives them extra reassurance that they can alter their plans without losing their entire investment if something unexpected happens.
CFAR requirements
Cancel for Any Reason coverage can be added to most Seven Corners Trip Protection plans, and while it allows you to cancel your trip for any reason, there are still a few requirements before you can purchase or use it.
- You must cancel the trip two days or more before your scheduled departure date of your trip.
- You must purchase this benefit within 20 days of the date your initial trip payment/deposit is received.
- You must insure the nonrefundable cost of subsequent travel arrangements within 15 days of the payment/deposit for those arrangements.
It’s important to note that this Cancel for Any Reason benefit does not cover the failure of the travel supplier to provide the bargained-for travel arrangements due to cessation of operations for any reason.
Interruption for Any Reason
Like CFAR, Interruption for Any Reason (IFAR) coverage is an optional benefit you can add that allows you to interrupt your trip early for any reason you wish, not just those listed in your plan document.
When it comes to trip interruption, you could be reimbursed for the additional transportation cost to:
- Transport you home or to the final destination of your trip early;
- Join your trip if you must leave after your scheduled departure date or travel via alternate travel arrangements; or
- Rejoin your trip from the point where you interrupted your trip to your next scheduled destination.
Adding IFAR increases the cost of your trip protection although not by as much as CFAR (remember that they cover different events, so don’t be tempted to just get IFAR because it’s less expensive). IFAR will reimburse you 75% of the unused portion of your prepaid, nonrefundable trip expenses if you decide to interrupt your trip.
Why would you buy IFAR?
IFAR’s flexibility is, again, one of its main advantages. It also became more popular during COVID-era travel. Some people arrived at their resort only to be disappointed by the safety measures being taken. Rather than accept a situation they were uncomfortable with, they were able to use the IFAR benefit to either come home early or move on to their next destination where they felt safer.
Others have used IFAR when they had a falling out with their travel companion. An exciting getaway with your girlfriend is a little less romantic when you realize midway through the trip that the relationship isn’t meant to be. Rather than suffering beachside (there are worse places to suffer) with someone you’ve had a falling out with, you could use IFAR to end the trip and come home early. You might be single again, but you’ll also have gotten a refund for the unused portions of your prepaid, nonrefundable trip expenses.
IFAR requirements
While there are no covered reasons to consider when using the IFAR benefit, there are some requirements for purchasing it in the first place. You’ll notice that they are the same as CFAR above.
- You must purchase this benefit within 20 days of the date your initial trip payment/deposit is received.
- You must insure the nonrefundable cost of subsequent travel arrangements within 15 days of the payment/deposit for those arrangements.
Let Seven Corners Help.
If you’re able, wait to cancel or interrupt a trip until you’ve checked the covered reasons. If you’re not certain the reason is covered, contact Seven Corners and ask. We can help you make an informed decision.
And, as always, if your claim has been denied, check your plan document to see where your situation may have fallen in the exclusions or limitations.
Travel Insurance Can Protect Many Types of Expenses.
Travel insurance can be an affordable option to protect your trip expenses, medical expenses that could occur during your trip, and your personal belongings. It can provide important reassurance to travelers and can help if unfortunate events impact your next trip.
That being said, trip protection can be difficult to understand. That’s why it is helpful to talk with our sales team to ensure you choose the best plan for your situation. If you have questions, contact us by email or phone today.
Email sales@sevencorners.com
Toll free 1-800-335-0611
Worldwide 317-575-2652
Collect 317-818-2809
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*Travel insurance is provided as part of a travel protection plan, which consists of insurance coverages underwritten by United States Fire Insurance Company as well as non-insurance assistance services provided by Seven Corners, Inc. Insurance coverages are subject to the terms, limitations and exclusions in the plan, including an exclusion for pre-existing conditions.
Important information from United States Fire Insurance Company
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