Approximately one year ago, Covid-19 related trip interruptions and cancellations were not covered because insurance companies excluded pandemics in their policies. Although wildly popular in the states that offered ‘cancellation for any reason’ insurance, it was quietly discontinued since there were too many claims during the height of the pandemic.

Fast forward, a lot has changed.

Your most frequently asked questions are answered here:

Does Travel Insurance cover Covid-19?

Yes, all travel insurance companies now treat it like any other medical condition, however, if you or your family member do not have Covid, but have a ‘change of heart’ and are uncomfortable traveling due to Covid, the insurance companies do not list this as a covered reason. If borders are closed at time of travel due to Covid, it is also not considered to be a covered reason.

Am I covered if I test positive?

Yes, insurance generally covers you from the day after purchase until you return home. If you become ill prior to departure, the policy would cover your prepaid travel expenses that are insured. If you or your travel companions contracted Covid-19 during the trip and were diagnosed by a physician, most policies provide coverage for medical expenses, lodging and additional airfare to return home once it is deemed safe to travel.  Keep in mind, however, there are maximum limits depending on the policy you have chosen.

Am I covered for Covid testing?

Many destinations require a negative Covid test prior to arrival although the costs of the Covid test may not be covered unless you are on your trip, not feeling well and get a doctor’s note for mandatory testing.

Are pre-existing conditions covered?

Yes, but the insurance has to be purchased within a certain period of time from the initial deposit of your trip. Depending on the policy and your state of residence, it can vary from 14 to 21 days. You also must be fit, stable and able to travel at the time of purchase.

Does  ‘cancel for any reason’ insurance still exist?

Yes, the good news is more and more insurance companies have reinstated their  ‘cancel for any reason’ insurance (CFAR) policies, however, it is still not offered in every state and general exclusions may apply. Depending on the insurance company, you can cancel 24-48 hours prior for any reason, submit a claim and receive 50-75% of your insured trip.

What about ‘cancel for business reasons’?

Cancel for work related reasons may be available, varies by state of residence and greatly varies by insurance company.  This benefit may provide coverage if you cancel your vacation after the trip and policy have been purchased.  This generally does not provide coverage if your company institutes a quarantine requirement if you choose to go on vacation. You must read the policy carefully since some insurance companies do not offer it if you are the owner of the business.

When purchasing travel insurance, should I cover the entire cost of the trip or just the initial deposit?

Lynn Barty of Arch RoamRight recommends that you should only insure the full non-refundable portion of the trip. If any components of the trip are refundable, it is not necessary to insure them. Once the insurance is purchased, you will maintain the same policy so, even if the insurance company has a rate increase, you will not be affected and can add on when your final payment is due.

Am I insured for a natural disaster or a hurricane?

Yes, travel insurance policies define natural disaster in their policy and provide coverage if your residence or destination becomes uninhabitable due to a natural disaster. Most policies state that hurricane coverage is based on purchasing the policy before the storm is named. If you are already at your destination, coverage may be available for additional transportation costs to return home or additional lodging expenses if you have a covered trip delay.

Am I covered for terrorist attacks?

Travel insurance policies may provide coverage for terrorist attacks for cancellation or interruption of your trip. Most policies state the terrorist attack must occur within 30 days of your arrival and in a city you are scheduled to travel to. They also state the terrorist attack must be recognized by the government.