Travel Cancellation Insurance Policies

Travel insurance may not sound like a necessary expense. However, 120 million people surveyed between 2006 and 2008 disagree. According to the U.S. Travel Insurance Association (USTIA), these people spent $1.6 billion in 2008 alone on travel insurance. Attracted by the safety element, travelers often forget to check their travel insurance's cancellation policy before entering into an agreement.

Company Shutdowns

Travel insurance offers policies that cover the cost of your trip in the event that the cruise ship, vacation tour, or resort goes out of business. Without the insurance, you would be out the money for the trip, the expense of getting back home and the possibility of other unrefundable tickets and deposits.

Family Emergencies

The policies also include coverage for cancellations due to family emergencies. Deaths and severe illness of a family member before and during the trip will trigger the policy. The insurance covers the unrefundable deposits and payments as well as the price of the remaining days that will be unused because of the emergency.

Weather Cancellations

Trips cancelled due to hurricanes, earthquakes, tsunamis and other natural weather events are reimbursed by travel insurance. The policy covers unused plane tickets, accommodations and other unused, unrefundable parts of the intended vacation. If a flight is cancelled at the end of your trip (while you are still far from home), premium travel insurance policies will also pay you for the meals, a hotel room and other things that you'll pay for while waiting for a plane delayed because of the weather. Coverage for a hotel that is not longer inhabitable is also covered.

Terrorism

Travel insurance policies also cover trip cancellations within 30 days of an act of terrorism. Check your policy carefully because some only cover trips to foreign nations.

Work-related Cancellations

Sometimes duty calls and a trip has to be cancelled because of a work emergency or the loss of a job whether it temporary or permanent. Travel insurance policies cover the trip cancellation for these reasons. There are stipulations to this part of the policy, so speak to the insurance agent for more details.