What Does Trip Cancellation Insurance Not Cover?
Be aware that there is a difference between a covered reason for cancellation and “cancel for any reason.” which, as the name implies, covers "any" reason! You can probably guess what some of the most obvious covered reasons might be, such as a death in the family, dangerous weather events, sickness or injury that prevents your departure, or even a traffic accident en route to the airport. These are typically unavoidable.
But let's talk about a few situations that may not be valid as a "covered reason." These can happen, too! If you suspect that any of them are a possibility in your future, you'll want to opt for the so-called "cancel for any reason" (or "CFAR") upgrade on your trip cancellation plan.
“I broke up with my partner.”
Relationships can be fragile, and it's unfortunate when they break just before a major trip. Under most insurance policies that offer trip cancellation, a break-up with a spouse or partner is not a covered reason to cancel a trip. Some trip cancellation policies may cover legal separation or divorce, but be sure to ask questions and check the fine print to be certain.
“My dog/cat passed away.”
It’s an unthinkable event – having to put a pet down can be as painful as losing a human family member. It might be too difficult to continue your plans and feel unburdened enough to enjoy the trip. However, it is unlikely that your insurance policy sees it the same way. (Please note that service animals may be considered differently.)
“I went into labor right before my trip.”
While this may be a joyous event, it is not necessarily an "injury or illness." It will almost certainly require medical attention and will definitely interrupt your plans. However, pregnancy and/or delivery is generally not a covered reason for trip cancellation, unless there is a life-threatening condition for the mother or child. Please read your policy carefully and ask questions if this is not clearly defined in the terms.
“I had a panic attack.”
Anxiety is common. Getting on a plane or leaving home can be frightening for some, and last-minute attacks are especially frustrating. But again, an insurance policy may not recognize this as a covered reason for cancellation.
There are many more possible situations that you may believe are legitimate reasons to cancel a trip -- and most people would agree with you! However, your policy is likely designed to cover only the most serious and unexpected ones. The good news is that there may be upgrades available to expand your coverage to cancellation for "any" reason, so that even if you simply change your mind, you can benefit from your investment. Be sure to read and understand the policy. There's a customer service team ready to answer your questions, so reach out and ask!