What is financial default coverage?

The Financial Default protection benefit is part of the Trip Cancellation/Interruption benefit. Financial default coverage applies if the airline, cruise line, or tour operator goes out of business and you are unable to travel or suffer financial loss. In order for this coverage to apply, coverage must be purchased within 7 – 21 days (depends on company) of the initial deposit. After determining if you qualify for the benefit, some of the plans have 7-14 day waiting period before the benefit would become effective. Additionally, this benefit would be only available if the airline, cruise line or tour operator was […]

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Is there any company that provides travel insurance to cover loss of frequent flyer program miles, should the airline go out of business or if I am unable to re-instate them in the event of cancellation of a trip?

No, there is no company in the travel insurance industry that will cover loss of frequent flyer points or miles. Travel Insured will reimburse the penalty fee to return tickets back into the point program.

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Should I include the equivalent monetary “cost” of the airline ticket that I purchased with frequent flyer miles?

Generally the insurance companies will not insure tickets purchased with reward points or miles because no money has been paid. However, you should insure yourself for adequate trip interruption coverage. Make sure that you have purchased enough trip interruption coverage to cover the cost of an economy ticket home plus the cost of any unused, non-refundable land arrangements that you might lose if you have to interrupt your trip.

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I am in the military. What if I am called to duty or denied leave?

If your leave is denied because of declared or undeclared war, all policies will exclude that reason. There are several companies that address military leave or being called to duty in one form or another: Access America, Travel Guard – Cruise, Tour & Travel plan, Travel Insured, TravelSafe and Travelex all have “perils” that touch on this.

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Which policies will protect me if my trip needs to be cancelled because of terrorist activity?

Many of our plans offer coverage for “Terrorism”. Trip cancellation coverage is generally considered to be a “named peril” type policy, meaning that only those perils that are named in the policy are covered. This includes terrorism. Each company however includes their own definition of terrorism.

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