Travel Insurance - Takes care of your travel costs

Travel insurance can usually be arranged at the time of booking of a trip to cover exactly the duration of that trip or a more extensive, continuous insurance can be purchased from (most often) travel agents, travel insurance companies or directly from travel suppliers such as cruise lines or tour operators.

The most common risks that are covered by travel insurance are:
Cancellation, Curtailment, Delayed departure, Loss, theft or damage to personal possessions and money (including travel documents), Delayed baggage (and emergency replacement of essential items), Medical expenses, Emergency evacuation/repatriation, Overseas funeral expenses, Accidental death, injury or disablement benefit, Legal assistance, Personal liability and rental car damage excess.
Some travel policies will also provide cover for additional costs, although these vary widely between providers.

And in addition, often separate insurance can be purchased for specific costs such as:

• high risk sports (e.g. skiing, scuba-diving)
• travel to high risk countries (e.g. due to war or natural disasters)
• pre-existing medical conditions (e.g. asthma, diabetes)

Comprehensive travel insurance plan protects you on two levels. Cancellation/interruption insurance covers the nonrefundable and additional costs to you should you need to return home mid-trip or cancel it altogether. Medical insurance covers costs for medical expenses, and often includes a portion for emergency evacuation or airlift in the event of a serious accident. Expect to spend 3% to 7% of the cost of your trip

According to the U.S. Travel Insurance Association, about 30 percent of Americans purchase travel insurance, an increase from 10 percent before 9/11. The top three reasons are: peace of mind, protection against the unexpected and concern over losing the financial investment in a trip. Some 70 percent of cruisers buy travel insurance.

While a majority of those who don't buy travel insurance are familiar with flight and trip cancellation insurance, many people are unaware of travel health insurance, baggage coverage and medical evacuation insurance. Even among travel insurance buyers, only 50 percent were aware of medical evacuation insurance.

There's yet another kind of insurance that's available to air travelers that the airlines aren't exactly rushing to tell you about. In fact, they actually wish you didn't know about it. It's called excess valuation.

Reasons to buy travel insurance

1. Your flight has been cancelled.
2. Your bags are lost and your medication is in it. You need to have an emergency prescription filled.
3. Your passport and wallet are stolen, and you need emergency cash and a replacement passport.
4. You're involved in an accident and adequate medical treatment is not available. You need medical evacuation.
5. You need to cancel your trip due to illness.
6. Your cruise line, airline or tour operator goes bankrupt. You need your non-refundable expenses covered and to get to your destination.
7. You have a medical emergency in a foreign country.
8. A terrorist incident occurs in the city where you're planning to visit and you want to cancel your trip.
9. A hurricane forces you to evacuate your resort, hotel or cruise

First, check your homeowners' policy. "Usually, up to 10% of the value of your stuff is covered away from home," says Hunter. That means you can skip coverage for lost or damaged baggage. A more important call is the one to your health-insurance provider.

Your coverage may not extend outside the country. In most situations, it pays to get your insurance immediately after booking a trip. Buying insurance from the same company you've purchased a tour or travel service from spells trouble. There's the potential to lose not only the cash spent for your trip, but also the money spent on insurance. Even if your tour operator isn't likely to go under, it may include a policy clause that provides for a credit for a future trip rather than cash.