April 28, 2017 – Most travel insurance policies with the Trip Cancellation benefit include Terrorism coverage. However, travel insurance comparison site, Squaremouth, says there is one stipulation that may prevent coverage for a future attack.
Some policies with Terrorism coverage will not cover a terrorist attack if there has been a previous attack in the same city within the past 90 days. More than 25% of policies with Terrorism coverage on squaremouth.com have this stipulation.
“Some providers consider destinations that have recently experienced a terrorist attack, such as Paris, to be at a higher risk of another attack, and therefore will not provide coverage,” said Squaremouth spokesperson Megan Singh.
If a destination has experienced an attack in the past 90 days, travelers can still purchase travel insurance with Terrorism coverage for an upcoming trip, as long as the policy does not have that 90-day exclusion.
When Are Travelers Covered by the Terrorism Benefit?
The Terrorism benefit provides cancellation coverage if a traveler is unable to take their trip because of a terrorist attack at their destination.
In order to be covered under the Terrorism benefit, a traveler must have purchased their policy before the attack occurred. Additionally, the attack must meet the following requirements:
- It must be deemed an act of terrorism by the U.S. Department of State
- It must occur within 7-30 days of the traveler’s departure date
- It must occur in or near a city listed on the traveler’s itinerary
Travelers who utilize the Terrorism benefit can be reimbursed up to 100% of their insured trip cost.
What If Travelers Are Worried About Traveling Due to Terrorism?
Fear of a potential terrorist attack is not a covered reason to cancel a trip under standard Trip Cancellation policies. Only travelers with the Cancel For Any Reason benefit can be covered to cancel a trip out of fear.
Cancel For Any Reason is an optional upgrade that can be added to some travel insurance policies. This benefit reimburses up to 75% of a traveler’s trip expenses if they cancel for a reason that is not otherwise covered. It typically increases a policy’s premium by about 40%.
To be eligible for Cancel For Any Reason coverage, a traveler must purchase their policy within 14-30 days of making their first trip payment and insure 100% of their prepaid and non-refundable trip expenses. To use this benefit, travelers must cancel their trip in its entirety at least 2-3 days before their scheduled departure date.