As extreme weather events become more frequent, understanding how travel insurance covers situations such as hurricanes, floods, earthquakes, and snowstorms has gained importance, and brokers are being advised to encourage their insureds to check the fine print of weather-related coverage.
According to InsureMyTrip, most travel insurance plans include coverage for severe weather events, though the specifics vary by policy. Travellers need to purchase insurance before a storm or natural disaster is officially named or becomes known.
Terms like "Inclement Weather" and "Natural Disasters" are common in many policies, but how they are defined can differ, influencing what is covered. Travellers are encouraged to carefully review these terms when purchasing insurance, especially when travelling during seasons with higher risks of storms.
"Travel insurance offers financial protection when unexpected weather events disrupt plans," said Suzanne Morrow, CEO of InsureMyTrip. She emphasized that travellers should closely review their policies to ensure they have the appropriate coverage for weather-related incidents.
When a trip is interrupted or cancelled due to severe weather, travel insurance may cover pre-paid, non-refundable costs. Coverage depends on specific situations, such as flights being grounded due to weather or damage to accommodation from a natural disaster.
Travel insurance may cover travellers if airlines or cruise lines stop operations due to weather for a specified number of hours, if their accommodation becomes uninhabitable due to a storm, or if their primary residence is rendered uninhabitable by severe weather.
For those seeking more flexibility, Cancel for Any Reason (CFAR) protection allows cancellation for reasons not listed in the policy, though it may come with additional costs.
All-inclusive travel insurance policies typically cover trip cancellations, delays, and emergency evacuations during extreme weather events. However, not all policies offer the same level of protection making broker involvement crucial.
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