Travel Insurance - what's not covered
 

Since I've received so much advice from travelers on this board, I wanted to pass some along. I've spent the last several hours reading travel insurance policies and talking to representatives at STA, insuremytrip.com and tripinsurancestore.com. re travel insurance for my upcoming trip. For terrorist even coverage to kick in, the terrorist event must occur in the city you're leaving from or a city you're scheduled to travel to. That means, for example, if you're flying from Boston to Amsterdam and then on to Kilimanjaro and there is a terrorist event in New York or London that shuts down air travel, you're not covered under the terrorist activity provision because it wasn't in your itinerary (even though it will almost certainly effect your air travel). It's also not covered under trip cancellation/interruption because it's not one of the Covered Causes/Events. To the extent there is any coverage, it seems to be limited to Travel Delay, which has much lower limits (i.e. in the neighborhood of $500 to $1500 p.p.) Obviously I haven't checked every policy out there, but I've checked STA and two or three each from insuremytrip.com and tripinsurancestore.com and it was the same with all of them. Just something to consider when you're shelling out hundreds of dollars more for trip insurance.

I'm not sure what you are after but-
If you're looking for 100% total coverage for any eventuality that can happen in the universe, I don't think you're going to get it. Also, remember the more $$ coverage you have and/or the more stuff-happens it covers, the more it will cost you up front. Give me a billion dollars and I will cover EVERY THING that can happen to you, including any terrorist problems, 100%, no deductibles.

Decide why you want insurance, of any kind. I do not buy insurance for possible losses that would really not hurt me. I buy insurance to protect myself against losses that would have major impact on my lifestyle. And finally, remember that in the insurance game, the insurance company is the overall winner. The odds are on their side because they make the odds.

regards - tom

I'm not looking for coverage for everything in the Universe that could possibly go wrong, but before reading these policies, I would have expected Terrorism coverage to cover a terrorist incident that adversely effects my travel (e.g., my flight being cancelled and not being able to get out on another one for days and days), even if that terrorist incident didn't happen in a city on my itinerary. But then again, I don't work for the insurance company :)

I too almost never buy travel insurance. I'm only considering it in this case because the trip is so expensive. But if it doesn't cover all the (sadly these days) not so unusual scenarios, I'm starting to wonder whether it's worth it at all. Maybe it pays to just sign up for Flying Doctors and MedJet and call it a day (since my health insurance is valid outside the U.S.)

Obviously everyone will have their own opinions about what is and is not worth it to them. I'm just sharing information I thought others might find useful.

Ok, understand, Traveler07. I just like an excuse to go off on an insurance rant :-) Because too many people buy insurance without using any logic as to why. We have been brainwashed by the insurance companies, including those warranties you buy for a new electrical gizmo, that insurance is good for us.

FWIW, when I travel I'm only concerned about medical coverage.

regards - tom

Thanks for posting this Traveler07. Please let me know what you decide.

I am in the final stages of figuring out (after much debate!) which travel insurance plan I should choose. I have narrowed it down to STA and Amex. STA is $250 and does not include terrorism coverage for us since we are past the 14 day deposit window. Amex does include terrorism coverage in its standard policy which is the reason we are considering it. That policy is $1178 for our trip. A BIG price difference, but given the state of the world, we are considering it for the add'l terrorism coverage it offers.

I have been struggling with this for a month!! Curious how other people respond to this post...

Imavolia,
We decided to buy the STA coverage. It was $152 for the two of us vs. $600-$700 for Travelex, Amex, Travel Guard, etc. Initially I was going to buy the more expensive policy, but once I read the fine print and realized the limitations and what wasn't covered, I determined the pricier plans weren't worth it (for us at least). But everyone has different needs when it comes to insurance. We're within the 14-day window, so we do get the terrorism coverage even with STA (although as noted above, it is very minimal and definitely not the reason I bought this policy).

Surely Tom you have that D200 + len's covered =-O
This is one major item that is INADEQUATE with most travel insurance companies, they simply don't give you enough cover. Which is why my camera gear comes under my home contents (away travel) insurance. ;-)
49 days to go.......and counting!
Cheers
Marc

The last thing I buy trip insurance for is Terrorism. The likelihood of this happening is less than
- getting ill before travel,
- breaking a leg/arm,
- some family member dies,
- delay getting to the airport even before your commence travel, etc.

And, using Traveler07's example, regardless where you'd be in the world, if Terrorism somewhere, everyone traveling would basically be in the same boat... planes not flying, no one is going anywhere. I recall, years back after the massacre at the Temple of Queen Hapshpsut in Luxor, when everyone wanted out of Egypt, the insurers seemed to handle the travelers on a individual basis... some were evacuated, others had to wait... it varied.

Last year ('06) was the first that I decided not to purchase a comprehensive policy, instead only medical and evacuation. Why? Because I knew I was going to Africa, regardless. Then 10/days prior leaving I got the worst pain in my leg, barely able to walk; not until it was determined I was good to travel (with airport wheelchair assistance and a lovely bright neon blue cane)... I would have been out the cost of trip had I cancelled. I probably would have been able to postpone, but other I was out of luck.

This year, I went with the comprehensive coverage including cancellation/interruption with terrorism however much/when covered. I wasn't about to take any chances.

Overall insurance is a lousy investment, but when you prepay a sizeable of money for a holiday, it's something to seriously consider, as one just never knows what will be. There are enough choices out there to make the decision that works best for your patricular situation. Or not!

cary - for electronic equipment? no way :)

I buy an annual travel insurance cover, that costs about USD 150, and covers all my potential medical expenses, even when doing dangerous activities (not all, but safari, white water rafting, horse riding, and bungee jumping are all included). It only covers the loss of indiviual items of up to USD500, so the camera I borrowed for my safari wasn't covered, but it was a risk I took. Terrorism didn't even cross my mind - it is very rare in most places.

after all, the insurance companies are in that business to make a profit, so it makes sense that they cover their you know whats, and write policies that protect them, not you.

Although, we will get insurance. My Dad, years ago, had bought and paid for a wonderful 3 week trip to China, bird watching. Unfortunately, he had a stroke a week before he was supposed to go - the whole thing, almost, was reimbursed by insurance, and the process was relatively painless.

What are the chances, really, of a terrorist event happening? Media hysteria aside...

thanks for the feedback everyone...i am leaning toward STA. My only concern about terrorism is really in Nairobi. My sister works for a doctor who is from Nairobi and strongly advised me NOT to go to Nairobi during an election year. Given the suicide bombing there about a month ago (and yes, all of the media hysteria!), I thought having trip cancellation due to terroism might be a good idea if things heat up in Nairobi. But, I am only staying in Nairobi for a day (even less really), so chances are slim...I am also from NY, so God forbid something happened here, that is my other concern.

On the medical side, my insurance will cover me for medical abroad, so not sure if that is a big concern although medical evacuation definitely is.

Finally, lost/stolen baggage or travel docs is important to me, and I think Amex has higher coverage than STA there, but not by much...I am starting to talk myself into STA :-)

Reminder

- for home, coop, condo owners and apartment renters, the insurance you have covering any of these residences, should cover lost clothing/baggage when away from home. Mine does.

I've always judged a travel insurance company by how well they respond when an emergency hits. My sister was injured in Thailand and was repatriated. The company was worldnomads.com. They did such a terrific job so I decided to give then a crack when I went to Peru. The price is excellent but I was a twit and only got 3 weeks when I needed 4. I was able to extend when I was away ( which is the first I've heard of being able to do that).

I also got a language guide and ended up donating through their Footprints (? I think thats what its called) charity program as well. Bizzare amount of value for an insurance company. Anyhoo..I'd have a look at them if you need good cover.