Terrorist Activity Boosts Interest in Travel Insurance

November 25, 2015

There has been a rise in demand for travel insurance due to recent terrorist attacks, according to an online seller of the coverage.

Travel insurance comparison site InsureMyTrip said that since the attacks occurred in France on Nov. 13, the site’s insurance agents estimate they have experienced a 20 percent jump in calls from travelers seeking insurance protection.

The response comes as the U.S. State Department issued a rare worldwide travel alert on Monday, warning American travelers about widespread threats posed by terrorists.

According to an internal poll of licensed insurance agents at InsureMyTrip, the most common requests from travelers include information on terrorism-related coverage.

According to InsureMy Trip, most comprehensive travel insurance plans allowing insureds to cancel or interrupt travel plans if an act of terrorism occurs in their destination city within a certain number of days (anywhere from seven to 30) of their scheduled arrival. However, policies may differ in their definition of terrorist acts; most require that the U.S. government has declared the event a terrorist act and they distinguish between terrorism and civil disorder or riot. Most policies do not cover trip cancellation due to terrorism if they are purchased after a travel alert or warning is issued. Also, some limit coverage to cities that are specifically on the insureds’ itinerary and exclude outlying regions or to the country as a whole.

According to InsureMyTrip, the most reliable way to be covered for terrorism is to purchase a plan as early as possible and invest in a plan that includes what is called “Cancel for Any Reason” coverage. This optional benefit allows for cancellation up to two days prior to the scheduled departure date for reasons other than those listed as “covered reasons” on a policy. In most cases, it reimburses up to 75 percent of pre-paid, non-refundable trip costs.

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