Fortunately, there is travel insurance for that and it’s called trip cancellation service. Although this is one of the most expensive types of travel insurance at about $4 per $100 of the cost of your trip, it has quickly become the most popular option for travel insurance.
Trip cancellation insurance has changed a lot in recent years and you are no longer required to have a specific type of emergency in order to collect on this insurance. For example, if you are on vacation and your work calls you and tells you that they need you to come back immediately to meet with a client, your insurance will cover that. It doesn’t have to be a medical emergency to qualify for reimbursement. There are other types of travel insurance too.
Another type of insurance that would be considered coverage for a liability is lost luggage insurance. The cost is about $1 for every $100 you claim in luggage and it will cover anything that you take with you when you travel with the exception of money, gold, Berra bonds or other “money” items. These types of things will require their own type of insurance.
Airlines do provide a certain amount of lost luggage coverage, however, the provision is minimal and doesn’t cover replacement value for your items, only current market value. In addition, airlines don’t cover any electronic items, including things that can be used in electronics, such as CDs, DVDs and memory cards.
Often lost luggage insurance also covers delayed luggage as well. Delayed luggage insurance basically provides you with a change of clothing, toothbrush, soap, etc. to tide you over until your luggage arrives. If purchased separately it literally only costs a couple of dollars and is well worth considering if you are heading to a business meeting or wedding right after you land that may require an immediate change of clothing.
The downside to most of these coverage types is that you have to pay for everything out of pocket and submit them for reimbursement. If you don’t pay for them, you will not receive the money from your insurance.
A few travel insurance companies will allow airlines, hotels and insurance companies to bill them directly for any extra fees. However, most of these companies won’t actually file the paperwork, there is simply too much administrative work at the back end and these entities simply don’t have the trained personal to handle these types of things.
The exception is trip cancellation, in this case, you submit the appropriate paperwork and you are reimbursed directly. Just make sure you follow the filing instructions to the letter and submit the paperwork before your time frame expires.
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