In the lead-up to his eagerly anticipated $14,000 all-inclusive family getaway to Bermuda, Ben Birstonas found himself facing an unexpected challenge. Hurricane Franklin, a menacing tropical storm, threatened the Caribbean paradise just days before their departure. This much-anticipated vacation was meant to be a post-COVID celebration for Ben and his family, but as news of the approaching hurricane grew, so did his apprehension.
On the morning of August 28, with their flight looming, the U.S. National Hurricane Center declared Franklin as the “first major hurricane of the 2023 hurricane season.” As the tempest intensified into a Category 4 hurricane, Bermuda was put under a tropical storm watch. Unfortunately, Ben’s travel insurance policy required him to cancel three days prior to the trip to be eligible for coverage, leaving him in a predicament.
This scenario underscores the importance of comprehensive travel insurance, especially for Canadians considering their options during hurricane season and in an era of increasingly extreme weather. Two vital forms of travel insurance are trip cancellation and trip interruption coverage.
Trip Cancellation and Trip Interruption Coverage Explained:
Trip cancellation insurance covers expenses incurred before you embark on your journey, including flight delays, cancellations, and destinations rendered uninhabitable due to weather or evacuation orders. Crucially, it also covers hurricane warnings.
Trip interruption insurance, on the other hand, comes into play when your trip is disrupted after you’ve reached your destination. It reimburses you for expenses like accommodations, food, rentals, and non-refundable deposits in case of unforeseen events like hurricanes, wildfires, volcanic eruptions, and other weather-related incidents.
The cost of comprehensive travel insurance typically ranges from 8% to 10% of the trip’s total value. For instance, a $4,000 trip could result in a $400 insurance premium. Keep in mind that the longer you stay and the riskier your destination, the higher your insurance costs may be.
Additional Considerations and Tips:
- Timing Matters: Purchase insurance well in advance since coverage cannot be obtained after a hurricane or other natural disasters have occurred.
- Review Coverage: Confirm that your upgraded insurance includes protection against hurricanes and other extreme climate events.
- Credit Card Coverage: Be cautious about relying solely on credit card coverage, as it may have limitations and lower reimbursement amounts.
- Specialized Activities: If you plan to engage in adventurous activities like parasailing, scuba diving, or rock climbing, check if they are covered under your insurance policy.
- Medical Insurance: Separate medical insurance may be necessary, especially if you have unique circumstances like pregnancy or pre-existing medical conditions.
- Risk Tolerance: Ultimately, your decision to opt for trip cancellation or interruption coverage should align with your risk tolerance and travel plans.
In conclusion, when planning your next vacation, prioritize securing comprehensive travel insurance that accounts for potential disruptions caused by hurricanes and other extreme weather events. Taking these precautions will help safeguard your travel investment and provide peace of mind during hurricane season and beyond.
