Webcast: Insurance might ease your travel fears

SACRAMENTO
August 23, 2006 12:01am

Terrorists. Hurricanes. Unchecked molten lava.

All can put a damper on one’s vacation but the insurance industry says the proper travel insurance policy can at least salvage the monetary outlay.

But don’t assume all travel insurance is created equal, says the Insurance Information Network of California.

As pointed out by the Wall Street Journal this week, some policies won’t pay if terrorists trash your trip.

And if the endless cycle of cable news stories about terrorism causes you so much angst that you cancel your prepaid trip out of fear, don’t expect most policies to pay you, the Journal says.

Also, among the policies covering terrorism-induced trip cancellations, there are exceptions, often related to when a terrorist act occurred, the newspaper says.

But Insurance Information Network of California spokesman Tully Lehman says buying a policy may be a good idea, especially if the trip is a costly one.

“I think it’s a good idea for everyone to consider travel insurance … when you consider the expense you’re putting into your vacation plans – the costs of airfare, cruises, the costs of hotels,” Mr. Lehman says. “To have that financial backstop is very important.”

((Listen to Mr. Lehman’s tips for buying travel insurance in our CVBT interview by clicking on the link below.))

Mr. Lehman says travelers should also review their homeowners and credit card insurance policies as they may offer some form of protection for some aspects of a trip, such as lost luggage.

Premiums average from 5 percent to 8 percent of the total price of the trip. When shopping for a policy, it is important to understand the specifics of the coverage, the IINC says.

The IINC describes itself as a non-profit, non-lobbying insurance communications association.