Introduction

You’ve spent a year planning your dream vacation, but right before you leave, a hurricane, wildfire, or extended heat wave hits your destination. When extreme weather events make travel unpleasant or even impossible, do you have to eat the cost of your trip? You can insure a trip against extreme weather to some degree, but your coverage limits may depend on the type of policy and the reasons your trip is canceled, delayed, or interrupted.

Types of Travel Insurance

There are several types of travel insurance that may provide protection against problems caused by extreme weather.

Trip Cancellation, Interruption, or Delay Insurance

This insurance reimburses you for a percentage of your expenses when your trip is delayed, canceled, or interrupted through circumstances outside your control. For example, your trip might be canceled if extreme weather prevents you from reaching your destination, or interrupted if a natural disaster makes your hotel uninhabitable.

Baggage Loss or Delay Insurance

If your baggage or personal belongings are lost, damaged, or stolen, this insurance may reimburse you for related expenses. There are typically caps on reimbursement, and some items, such as electronics and jewelry, may not be covered.

Travel Medical Insurance

Your regular health insurance may not cover you outside the U.S. Travel medical insurance can help pay for medical care if you become injured or ill while visiting a foreign country. It may also cover emergency medical assistance, such as airlifting you out of a remote area.

Comprehensive Travel Insurance

Comprehensive policies typically include trip cancellation, delay, and interruption insurance; travel medical insurance; and emergency medical assistance. They also usually provide a 24-hour helpline you can call to find medical care, arrange lodging, or get other assistance in an emergency.

Additional Coverage Options

Cancel for Any Reason (CFAR) Insurance

CFAR insurance can help in situations where traditional travel insurance may not. It reimburses you for part of your travel expenses if you cancel your trip for any reason. CFAR policies can add 50% to the cost of travel insurance and generally have strict criteria.

Interruption for Any Reason (IFAR) Insurance

IFAR insurance works similarly to trip interruption insurance, except it allows you to end your trip for any reason and receive reimbursement for part of the cost. You generally cannot end your trip until 48 to 72 hours after your initial departure date.

Will Your Credit Card Cover a Canceled or Delayed Trip?

Credit cards may offer limited travel insurance and other protections if your trip is canceled or delayed by extreme weather or other factors. Coverage may include rental car insurance, baggage delay insurance, trip delay insurance, trip cancellation and interruption insurance, and emergency travel assistance benefits.

Things to Consider When Buying Travel Insurance

In addition to reviewing the travel protections your credit cards provide, check any coverage your homeowners insurance or renters insurance provides for personal belongings away from home. Find out if your car insurance offers coverage for rental cars. Also, check your health insurance to see if it will cover you at your destination, or if the insurance carrier offers any travel health insurance plans.

When shopping for travel insurance, ask these questions:

• What parts of your trip are covered?
• Who is covered?
• Is this primary or secondary insurance?
• What are the caps on coverage?
• When must you buy the policy?
• What are the criteria for canceling a trip?
• What is the waiting period before trip delay or baggage delay coverage kicks in?
• Does travel medical insurance cover pre-existing conditions or medical evacuation?

Review the details of any policy you’re considering to confirm coverage, exclusions, and limitations. Be sure to bring your policy numbers and contact information for the insurance carrier on your trip.

The Bottom Line

Travel is expensive, so it’s worth taking time to ensure your trip is covered if extreme weather strikes. Getting adequate travel insurance may require supplementing your existing insurance policies with separate travel insurance. A credit card that offers travel protections can also help safeguard your trip.

Contact O1ne Mortgage for Your Mortgage Needs

At O1ne Mortgage, we understand the importance of protecting your investments, whether it’s your dream vacation or your dream home. For any mortgage service needs, call us at 213-732-3074. Our team of experts is here to help you navigate the complexities of mortgage services and ensure you get the best possible deal.