What the Paris Attacks Mean for Travelers With or Without Traveler Insurance

Among the many tales in Paris this weekend were the ones that pointed to the importance of travel insurance when things go horribly wrong.

If purchased prior to November 13, most travel insurance policies will cover booked trips that are canceled because of “acts of terrorism” as defined by the U.S. government.

A standard policy from Allianz, for example, would reimburse travelers who cancel a trip in a location where there has been terrorist activity within 30 days of their scheduled arrival.

A tourist in Paris this weekend, for example, could go home, and be reimbursed for any prepaid expenses and additional transportation costs.

In general, travelers must show they have “hotel, transport, or tour bookings in or near” the site of terrorist activity, said Rachael Taft, a spokesperson for online insurance website Squaremouth. Many policies require the traveler’s departure date to be within a specified time period of the attacks, often 7-30 days.

Under some travel insurance policies, the terrorist attack must have occurred in a city, or within 50-100 miles of a city, that is actually on their itinerary.

Not every insurance plan covers terror attacks. Travelers also can purchase “Cancel for Any Reason” plans; these cost an additional 30%, and cover just about anything, including health issues, bad weather, natural disasters, deaths in the family, and any “inhibitor” that prevents travel.

A typical insurance policy costs about 5%-7% of a given trip; if a trip to Europe costs $5,000, then insurance would cost $250-$300; a “Cancel for Any Reason” policy would cost $80 or $90 more.

Be advised that a “Cancel for Any Reason” policy is only available as an upgrade within 14-30 days of the initial deposit date, requires the traveler to insure the entire trip cost, only reimburses up to 75% of the traveler’s trip costs, and requires travelers to cancel their trips at least 48 hours before the departure date.

Many tour companies, such as Collette, Travel Bound, and Alexander+Roberts, have flexible cancellation policies during chaotic times, as a customer service. All three told TMR that they are allowing full cancellations within 48 hours of booked reservations in areas near the attacks. Most airlines also allow travelers to change their flights at no cost in case of an emergency like terrorism or natural disaster, with no insurance required.

Daniel Durazo, director of communications for Allianz Global Assistance, said he has already heard from 60 customers who will be filing claims related to canceling a trip to Paris, and has received more than 175 calls from customers inquiring about their coverage.

Durazo said that as a result of the attacks on Paris he has already seen growth in sales to travelers to Europe—a trend he expects to grow as wary travelers head across the Atlantic.