While the pandemic has squeezed travel, it may have encouraged travel insurance, say those in the industry.
“The biggest question we get from customers is, ‘What if I get Covid while traveling and what if I have to quarantine?’” said Jeremy Murchland, president of Seven Corners, a travel insurance management company. “Covid has created a much wider awareness of travel insurance.”
But will it help you in light of the new Omicron variant, which has already brought new travel restrictions and requirements? In the early days of the pandemic, travel insurance largely failed to protect travelers who wanted or had to cancel when the world came to a standstill. Below you will find answers to frequently asked questions about travel insurance now.
Does travel insurance cover Covid-19, including the new Omicron variant?
For the most part, yes, travel insurance now treats Covid-19 in all its variants — including Omicron — like any other medical emergency.
“Consumers should know that most travel insurance plans with medical benefits now treat Covid like any other illness you could contract while traveling or that could prohibit you from traveling,” said Carol Mueller, a vice president of Berkshire Hathaway Travel Protection. “If you become ill before your trip, you need a doctor’s certificate showing that you are ill and cannot travel in order to be eligible for benefits. The benefits are the same whether you get Omicron, another strain of Covid, or any other disease.”
Buyers should read the policy carefully and watch out for those that exclude pandemics, Covid-19 and its variants. To be eligible, you must have had travel insurance before you became ill.
“We always say, you can’t get auto insurance after you’ve already been in an accident,” says Meghan Walch, product manager of InsureMyTrip, an insurance sales site. “It is designed for unforeseen problems. You have to buy it for an event.”
I travel internationally. If the borders close because of Omicron, will I be covered by travel insurance?
No, most policies will not cover you if your foreign destination closes its borders to visitors, as Israel recently did. With a few exceptions, this includes a government-issued travel warning to a destination, which is generally not a covered reason to make a claim.
Given Omicron’s additional uncertainties, should I consider a ‘Cancel for any reason’ policy?
Cancellation for any reason, or CFAR provisions allow you to claim a portion of your non-refundable costs if you decide not to travel for any reason, including border closures or fear of contracting Covid. The problem is that this form of insurance – in addition to being more expensive – generally has to be purchased within a day or two of booking the trip and will only reimburse 50 to 75 percent of the non-refundable travel costs.
“Most travel insurance policies don’t cover you because you want to cancel for fear of Covid. We say that 10 times a week,” says Sarah Groen, owner of bureau Bell and Bly Travel. She advises clients to consider their worst fears — illness or quarantine, for example — when resolving travel insurance. “We just became therapists,” she said.
What about quarantine and medical costs?
Make sure the policy you choose covers it. Check with your regular health insurer for medical coverage; many policies don’t cover you abroad, which is another reason to consider coverage if you’re traveling internationally.
“What travel insurance can do is cover extra hotel stays when you’re able to self-quarantine and extra plane tickets when you can come home,” said Megan Moncrief, the chief marketing officer of Squaremouth, a travel insurance sales site. She added that most policies extend up to seven days beyond your originally scheduled return date, which in fact only covers about seven days in case of quarantine.
Is travel insurance required for some destinations?
Yes, mainly to cover medical care or quarantine accommodations in the event a traveler tests positive for Covid-19. Singapore, for example, requires medical insurance with a minimum coverage of Singapore Dollar 30,000, or about $22,000. Fiji requires travel insurance to cover potential treatment for Covid-19, and makes it available starting at around $30. Some destinations, such as Anguilla, advise getting travel insurance instead. InsureMyTrip.com has a page dedicated to countries that require travel insurance.
It’s good to think about what it takes to go home for treatment if you get Covid-19 abroad. Thailand, for example, requires travelers to have medical insurance with a minimum coverage of $50,000. “Evacuation from Thailand would be higher,” said Sasha Gainullin, the chief executive of Battleface, a travel insurance start-up that unbundles benefits. In the case of a trip to Thailand, he recommended taking medical coverage up to $100,000 for local treatment and $500,000 for medical evacuation and repatriation.
Do I need insurance if I have bookings with flexible cancellation conditions?
Probably not, if you have hotel reservations that can cancel free of charge 24 to 48 hours in advance. Same with flights; if your flight can be changed and you get a voucher or refund in case of cancellation you are covered.
I rented a house with restrictive cancellation penalties. Can I insure against this?
Yes. Vacation rental from Airbnb and the like can be treated the same as other non-refundable properties. In this case, you would want to get a policy for the amount you would lose if you had to cancel for a covered reason such as illness. Again, travel anxiety is not a covered reason; for that you have CFAR . required
Elaine Glusac is a columnist for the Frugal Traveler. Follow her on Instagram: @eglusac.
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