05-07-2025
Warning: Travel Insurance May Not Cover This
When things go wrong this summer, travel insurance can help — except when it doesn't. getty
As summer travel heats up, so does the demand for travel insurance. But before you click 'buy' on a policy, take a minute to read the fine print.
"There are certain exclusions that travelers may not be aware of," says Chris Carnicelli, CEO of Generali Global Assistance (GGA).
Travel insurance, despite its promises, doesn't always cover everything.
'Travelers are turning to travel insurance to help protect their trips," says Beth Godlin, president of Aon Affinity Travel Practice. "But it's important to understand that there are a few scenarios that may not be covered by their policy."
That's true. This summer is shaping up to be one of the busiest travel seasons on record, with airlines and airports bracing for delays, cancellations, and overbooked flights. As many as half of travelers will buy travel insurance to protect their trips.
"Circumstances that are known or foreseeable at the time a policy is purchased may not be covered under standard travel insurance policies," warns Robert Gallagher, president of the US Travel Insurance Association, a trade group. A surprising discovery on a European river cruise
Take Linda Prybil, who learned this lesson the hard way. She's planning a European river cruise with AMA Waterways and decided to purchase travel insurance because of the steep cancellation penalties and her recent knee surgery.
'I was surprised to find out that even the best insurance doesn't cover a full refund,' says Prybil, a retired teacher from Iowa City, Iowa. 'Even with 'cancel for any reason' policies, the max seemed to be 80 percent, and not everything would be a cash-back refund.'
Prybil also discovered that if her flights were canceled and the airline issued a credit instead of a refund, her insurance wouldn't cover the cost.
'I booked my British Airways flights through American Airlines because I fly with them often and could use a credit if needed,' she explains. 'But the cruise cost was another story. If the cruise line issues a voucher, insurance won't give you cash back. That was a big bummer.'
Prybil's experience highlights a common misconception: travel insurance is a safety net for every possible scenario. In reality, it's full of exclusions and limitations.
Here's a short list of what most policies won't cover — and what you can do about it. 1. Pre-existing medical conditions
If you have a medical condition before purchasing a policy, it likely won't be covered unless you buy a waiver within a specific time period after booking your trip. 'A lot of people assume pre-existing conditions are covered, but they're usually excluded,' says Joe Cronin, president of International Citizens Insurance. 'You need to purchase a policy with a waiver to close that gap.' 2. Civil unrest and political instability
Jackie Swayze, a remote work specialist from Austin, Texas, learned this the hard way when she canceled a trip to Peru because of an attempted coup and riots. 'My policy covered war and terror attacks, but not civil unrest,' she says. 'Now, I always buy 'cancel for any reason' coverage when traveling to volatile regions.' 3. High-risk activities
Love adventure sports? Some policies won't cover injuries from high-risk activities like scuba diving, bungee jumping, or zip-lining. 'I've had clients think they were covered, only to find out after an accident that their policy excluded those activities,' says David Giraldo, a tech expert who works for a website that sells mobile data plans. 4. Natural disasters
If a hurricane or tropical storm is named before you buy your policy, any cancellations related to it won't be covered. "If a storm had already been named prior to purchasing your policy, you probably won't be covered if it impacts your trip," says Daniel Durazo, a spokesman for Allianz Travel Insurance. "If a natural disaster occurred at your destination prior to purchasing your policy, you probably won't be able to cancel your trip because you no longer want to travel to that location." 5. Scams and fraud
Falling victim to a scam, like booking a fake rental property or tickets, is another area where travel insurance may not be able to provide reimbursement (though your rental booking platform potentially can). 'In most cases, travel insurance doesn't protect you from scammers,' says Elad Schaffer, CEO of Faye Travel Insurance. 6. Loss of valuables and electronics
Shirlene Tsang, co-founder of an online jewelry store, warns that most travel insurance policies don't cover high-value items like jewelry, watches, or electronics. 'If something expensive goes missing, there's a good chance you won't get the full value back,' she says. 7. Terrorism
"Standard policies don't cover cancellations or delays caused by acts of war or terrorism, though some offer specific riders," notes John Rose, chief risk officer at ALTOUR, a global travel management company. If you're headed to a place where terrorism is a possibility, like parts of Europe and the Middle East, check your policy carefully. Is "cancel for any reason" insurance a workaround?
The most comprehensive solution may be to buy a "cancel for any reason" travel insurance policy. While it costs more — typically 10 to 12 percent of your trip's prepaid, nonrefundable cost — it offers greater flexibility.
'Cancel for any reason coverage is the only way to ensure at least a partial refund in unpredictable situations,' says Giraldo. Take advantage of the "free look" period
One of the biggest mistakes travelers make is waiting too long to buy insurance, say experts.
'The time to think about insurance is before you book your vacation,' says Steve Pritchard, founder of Cuuver, an insurance comparison site. 'You usually have one to two weeks after booking to purchase a policy.'
Also, if you purchase your policy when you book a vacation, you can often qualify for a pre-existing conditions waiver. That means the policy will sometimes cover any existing medical conditions at no extra cost.
One more pro tip: Most policies have a "free look period" that lets you cancel within a certain time.
"One of the best ways travelers can ensure they have the right coverage is by taking advantage of the free look period," says GGA's Carnicelli. "This allows them to purchase a plan, review the coverage details, and cancel within the stated time. This flexibility ensures travelers can make an informed decision without feeling locked in."
This summer, don't let your travel insurance leave you stranded. Know what's covered — and what's not — before you hit the road.
