Honeymoon: Honeymoon Travel Insurance?
Q: One of my friends recently found herself stranded due to a bankrupt cruise company, and she told me the only thing about the experience that wasn't infuriating was the fact that she had taken out a honeymoon travel insurance policy beforehand and was getting her money back. Her experience has me coming up with all kinds of honeymoon worst-case scenarios, and now I definitely want a policy of my own! What should my fiance and I be looking for in a travel insurance policy?
A: Travel insurance is a great idea for honeymooners, particularly if you are purchasing any expensive, non-refundable package trip like a cruise or a tour. The most important policy point to look for is coverage of financial default (that's what saved your friend when her cruise line went belly-up) -- a major reason why you should buy an independent policy. After all, if you buy one from your trip's company and they go bankrupt, it's safe to say they will not be reimbursing you! Another point many travelers are looking into (particularly for travel outside of the Americas) is a terrorism clause, which would allow you to cancel your trip without penalty should an incident occur in any city on your itinerary. But beware -- these are tough to find, and it can be even tougher to actually get your money back. For example, you won't be covered if the incident happens in an area that has a U.S. State Department warning (even if you don't think there will be trouble where you're headed, you should always check -- a little-publicized incident that happened six months ago will jeopardize your being repaid even if you cancelled because of something that just happened). Do your homework online at http://travel.state.gov. Overall, you are probably better off finding a policy that includes a more generous cancellation clause (known as a cancel-for-any-reason option). These will usually get you back most, if not all, of your money. Lastly, be sure that the policy covers cancellation or trip interruption due to medical issues (including any pre-existing conditions). No matter what policy you choose, read the fine print! Some policies require you to have insured your trip a certain number of days in advance of departure, others may have specific dates of expiry; but you should be safe so long as you know what you're signing.