War and Travel Insurance – What a traveler needs to know.

Sabers are being rattled on the Korean peninsula and travelers are calling about coverage in case they have to cancel due to a war or an act or threat of war.   Does travel insurance provide coverage.  Probably not unless the traveler buys “cancel for any reason” coverage(CFAR).

Why doesn’t traditional travel insurance provide coverage?  The main reason is that most travel insurance policies have a general exclusion that eliminates coverage if cause by war or any act of war or civil commotion.   Because of this exclusion, basic travel insurance won’t provide coverage however, those plans with CFAR coverage at least provide partial coverage for cancellations.  Simply put, CFAR coverage provides benefits if you have to cancel a trip for a reason that is not otherwise covered either because it isn’t a covered reason or because it’s specifically excluded – such as cancellations caused by war.

“Cancel for any reason” coverage is found on some plans either built into the basic plans or available as an option that can be added to a basic policy.    As a general rule, in order to be eligible for CFAR coverage you must purchase the coverage within a short period of time following your first payment date and you must insure you trip to value.  Plans usually have a 25% copay and a black out period of 48 hours prior to departure where cancellation caused by a non-covered reason will not be covered.

CFAR isn’t for everyone but if a traveler is concerned about the potential for war than it is their only alternative.

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