The need for travel insurance has to be weighed against its benefits vs. its costs. When examining the benefits of travel insurance you should be aware that your homeowner’s insurance may already offer coverage for certain aspects of your personal property that travel insurance provides coverage for, therefore you may be duplicating coverage in some respects. Homeowner’s insurance does not provide coverage for trip cancellations, delays, or medical bills during your trip. Travelers insurance is a product specifically designed for the perils of traveling and is therefore better suited to the task.
Some travel insurance policies are offered as an add-on to your current homeowner’s insurance policy. This is a good way to eliminate duplicate coverage. This type of policy is designed to pay specifically for those things that are excluded on your homeowner’s insurance or subject to a special limitation. This is known as “secondary insurance”. This type of policy is less expensive but it also offers fewer coverage options.
Another disadvantage to dealing with a “secondary insurance” policy is that in the event of a claim you will become the go between for the two companies and you will have to essentially make to claims and manage each of them. You may find significant delays while your homeowner’s insurance company evaluates the claim, and will then have to verify to your travel insurer the items that your homeowner’s insurance company will not pay for. This will involve keeping track of receipts, letters and other correspondences, and policy claim forms so that you can prove to the secondary insurer the sum total of your claim.
Travel insurance policies afford many helpful features but there are often exclusions you should research. Some policies will exclude weather delays. This can be a very important factor depending on the nature of your trip. There is typically no coverage for a change in plans or if you change your mind about taking the trip. Pregnancy or childbirth are usually not covered nor are previous medical conditions.
Make sure to discuss travel insurance options with your travel agent. With so many types of policies available, there should be a match for you. Travel insurance may not be the answer for you if your trip is relatively short or inexpensive. IT is designed to provide you with peace of mind, and protect the investment you have made. Taking a vacation can have its risks, and protecting your hard earned dollar may be a very important priority.