When a trip goes sideways — a canceled flight, political unrest, a hurricane, a medical emergency abroad — most travelers say the same thing:
“Good thing I bought travel insurance.”
But here’s the hard truth: Travel insurance only protects you if you understand what you purchased.
As a consumer attorney, I’ve seen too many travelers assume they’re covered — only to learn, after filing a claim, that their policy excludes exactly what happened. Before your next trip (and especially when traveling internationally), here’s what you need to know about your legal rights under a travel insurance policy.
1. Travel Insurance Is a Contract — And Contracts Matter
A travel insurance policy is a legally binding contract. That means:
- Coverage is limited to what is specifically listed.
- Exclusions are enforceable.
- Definitions matter — a lot.
Insurance companies rely heavily on narrow definitions. For example:
- “Trip cancellation” may only apply to specific listed reasons.
- “Medical evacuation” might require pre-approval.
- “Civil unrest” may not be covered unless it meets the policy’s definition.
Tip: Always request the full policy document before purchase — not just the summary brochure.
2. Trip Cancellation vs. “Cancel for Any Reason” (CFAR)
Most travelers assume they can cancel for safety concerns. That’s not always true.
Standard Trip Cancellation
This typically covers:
- Illness or injury (you or a close family member)
- Death in the family
- Jury duty
- Certain natural disasters
- Sometimes terrorism (if it occurs within a defined timeframe)
It often does not cover:
- Fear of travel
- General safety concerns
- Government advisories (unless specifically included)
- Known events that existed before you bought the policy
Cancel for Any Reason (CFAR)
CFAR coverage:
- Must usually be purchased within 10–21 days of your initial trip deposit.
- Often reimburses only 50–75% of prepaid costs.
- Requires cancellation 48+ hours before departure.
If you’re traveling to an area with potential political instability or unpredictable weather, CFAR may be the only meaningful protection.
3. The “Foreseeable Event” Trap
One of the most common claim denials is based on the “foreseeable event” exclusion.
If:
- A hurricane was already named,
- A travel advisory was already issued,
- Civil unrest had already begun,
…before you purchased your policy, the insurer may deny your claim on the basis that the risk was foreseeable.
Timing matters. When you buy coverage can determine whether you’re protected.
4. Medical Coverage Abroad: What Travelers Overlook
Many people assume their U.S. health insurance works overseas. Often, it doesn’t.
Travel medical insurance can cover:
- Emergency treatment
- Hospitalization
- Medical evacuation (which can cost $50,000+)
- Repatriation of remains
But watch for:
- Pre-existing condition exclusions
- Coverage caps
- Network restrictions
- Pre-authorization requirements
If the policy requires you to call the insurer before receiving care (when reasonably possible), failing to do so can jeopardize coverage.
5. Flight Cancellations: Insurance vs. Airline Rights
Before filing an insurance claim, know your airline rights.
Under U.S. Department of Transportation rules:
- If the airline cancels your flight and you decline rebooking, you are generally entitled to a cash refund.
Insurance typically kicks in when:
- The airline does not owe a refund,
- You incur additional covered expenses,
- You have non-refundable prepaid arrangements beyond airfare.
Insurance is often secondary — meaning you must first seek recovery from the airline, cruise line, or tour operator.
6. Required Documentation: Your Claim Depends on It
Insurance companies require proof — and lots of it.
Be prepared to provide:
- Medical records
- Physician statements
- Death certificates (if applicable)
- Police reports (for theft claims)
- Official government advisories
- Proof of payment and cancellation penalties
Failure to provide documentation is one of the top reasons claims are denied.
7. Bad Faith & Wrongful Denials
Insurance companies have legal obligations. If they:
- Misrepresent coverage,
- Unreasonably delay claims,
- Deny without proper investigation,
- Ignore clear policy language,
…you may have a claim for bad faith under state insurance law.
That said, not every denial is wrongful. The key question is whether the denial aligns with the actual policy language.
8. Steps to Protect Yourself Before You Travel
✔ Buy insurance immediately after booking
✔ Read the full policy — not just marketing materials
✔ Confirm whether pre-existing conditions are waived
✔ Consider CFAR coverage for higher-risk destinations
✔ Keep copies of receipts and communications
✔ Save screenshots of travel advisories if relevant
The Bottom Line
Travel insurance can be incredibly valuable — but only if you understand what you’re buying.
The biggest mistake consumers make is assuming coverage exists without verifying the terms. Insurance policies are designed to define coverage narrowly. Your protection lies in reading carefully, documenting thoroughly, and acting quickly.
If your claim has been denied and you believe the denial was improper, consult an attorney familiar with insurance law and consumer protection statutes in your state.
Before your next trip, take an hour to review your policy. It could save you thousands.
