How to read a travel insurance policy

Travel insurance policies are legal contracts between the traveler and the insurance company.  They are written by the insurance company to specifically state what they will cover.  Policies are regulated by the state insurance commission, and in most cases they have to be approved by them prior to use.  Even though they have to conform to state requirements, they can be hard to understand. When attempting to read a travel insurance policy or certificate keep the following points in mind:

All coverages

1. Read the coverage and benefits description.  These provisions will explain coverage and what financial loss will be paid. 
2. Are there any words that are italicized, or bold, or have their first letter Capitalized?  If so, these words probably have a special meaning unique to the insurance policy.  A standard section of travel insurance policies is the "definitions" section where these word are defined.  Always reference these definitions when trying to understand other provisions.
3. Read the exclusions and/or limitations.  All policies have them - it's the fine print.  Read them carefully because exclusions take away coverage.  Some policies will also include specific coverage exclusions or limitations in this area in addition to the common area of the plan.

Trip investment coverage - trip cancellation/trip interruption, missed connection, travel delay

These coverage have very specific triggers, called "covered reasons", which are the causes for a claim.  Only those covered reasons listed in the policy/certificate are reasons why the policy/certificate will cover you.  Read them very carefully and don't try to read into them thinking that the insurance company will cover something that is similar - they won't - coverage is limited to those covered reasons that are listed. 

Are there specific reporting requirements?  Many trip cancellation/interruption plans require that you notify your travel suppliers within 72 hours of having a covered reason that causes you to cancel your trip.

Keep all receipts.  If IRS won't allow an expense without a receipt why would the insurance company?

Property Coverage - baggage and personal effects, baggage delay, rental car coverage

Most baggage policies are "all risk" however, some policies are beginning to exclude mysterious disappearance, so read the coverage carefully along with the limitations and exclusions. 

Policies also have specific reporting requirements in the event of a loss.  Loss that occur while the property is under the care and custody of a common carrier must be reported to them.  Thefts have to be reported to the police.  Property that is missing without any specific reason might be considered a mysterious disappearance which may or may not be covered depending on the plan that was purchased.

Personal Coverage - medical, dental, and medical evacuation

Read the coverage and benefit descriptions.  Things to consider are:

1. Is coverage secondary or primary? If secondary you must first submit a claim to your permanent insurance first even if they don't cover the loss before the travel insurance company will settle your claim.  If it's primary then you only deal with the travel insurance company up to the limit of coverage.
2. Is coverage limited to only those expenses caused by medical emergencies?
3. Is dental coverage for any dental emergency or is it limited to injury to a sound natural tooth?
4. Are pre-existing medical conditions covered?  If not what is the definition of pre-existing conditions?

Special Consideration

The single most important consideration concerns "pre-existing medical conditions".  Travel insurance plans exclude pre-existing medical conditions, however, many plans offer a "waiver of pre-existing conditions".