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Can travel insurance help in case of terrorism? on Tue Nov 02, 2010 8:41 pm
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Can travel insurance help in case of terrorism?
With the government issuing a general travel alert for terrorism in Europe, many travelers are wondering if buying travel insurance is a smart idea.
A potential traveler recently wrote in to Ed Perkins of SmarterTravel, who runs an advice column. The traveler is planning on renting a villa in Tuscany next spring and is about to put down a large nonrefundable deposit. Yet the recent terror alert means that the traveler is nervous about what could potentially happen in Europe between now and the trip.
According to Perkins, a travel insurance policy can indeed help ensure that travelers will not lose their deposit due to a surprising incident, but it depends on the type of policy that one buys. Many basic trip interruption or trip cancellation policies include clauses for terrorism, but they only cover certain specific situations.
Travelers who want to be fully protected might wish to purchase a comprehensive war and terrorism insurance policy. Better yet, a "cancel for any reason" policy will protect against any unforeseen circumstance, by allowing travelers to get a refund even if they simply have a change of heart and decide to call off the trip.
"To me, [trip cancellation insurance] is just sensible," writes Perkins. "For somewhere between 5 percent and 10 percent of the total amount at risk, you can protect yourself against a wide range of unforeseen circumstances that might make you cancel your trip."
With the government issuing a general travel alert for terrorism in Europe, many travelers are wondering if buying travel insurance is a smart idea.
A potential traveler recently wrote in to Ed Perkins of SmarterTravel, who runs an advice column. The traveler is planning on renting a villa in Tuscany next spring and is about to put down a large nonrefundable deposit. Yet the recent terror alert means that the traveler is nervous about what could potentially happen in Europe between now and the trip.
According to Perkins, a travel insurance policy can indeed help ensure that travelers will not lose their deposit due to a surprising incident, but it depends on the type of policy that one buys. Many basic trip interruption or trip cancellation policies include clauses for terrorism, but they only cover certain specific situations.
Travelers who want to be fully protected might wish to purchase a comprehensive war and terrorism insurance policy. Better yet, a "cancel for any reason" policy will protect against any unforeseen circumstance, by allowing travelers to get a refund even if they simply have a change of heart and decide to call off the trip.
"To me, [trip cancellation insurance] is just sensible," writes Perkins. "For somewhere between 5 percent and 10 percent of the total amount at risk, you can protect yourself against a wide range of unforeseen circumstances that might make you cancel your trip."
