Clients Should Review Travel Insurance As Hurricane Season Begins

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While most travelers think of Memorial Day as the unofficial start for summer travel, it also begins the five-month peak hurricane season, and several insurance providers are offering advice to consumers and agents about how to best protect their trips.

Travel insurance agents at comparison site InsureMyTrip expect a 20% jump in call volume from travelers seeking insurance protection, noting that the top concern of summer travelers is bad weather. Hurricane season officially runs June 1 through November 30.

Squaremouth, a travel insurance website, offered up “The Three Biggest Misconceptions” travelers have about hurricane coverage.

First is that a consumer can purchase travel insurance after a storm has been named. “This misconception generates the most calls to Squaremouth and is the most costly mistake travelers when buying a policy for hurricane coverage,” the company said.

Once a storm starts forming, it’s considered a “foreseeable event” and insurance coverage will no longer cover losses, InsureMyTrip noted.

While you can still buy a policy after a hurricane has been named, Squaremouth said, you cannot file a claim related to that storm.

If a traveler purchases coverage, most can get a refund of their premium as long as they cancel within 14 days of buying the policy, but no later than one day before they leave home, insurance experts said.

The second misconception, Squaremouth said, is that travelers can cancel their trips if a hurricane is headed for their travel destination. But in reality, unless a storm actually hits, or there is an official NOAA-issued hurricane warning or alert, no travel insurance policy will provide coverage.

“Most travel insurance policies require the hurricane to have a direct impact on your travel or your accommodations to qualify for coverage. You most likely will be covered if your flight is delayed, your hotel is destroyed, or your cruise is canceled because of a hurricane,” the company said.

The final misconception, according to Squaremouth, is that travelers can receive payment if the destination suffers damage, even though their hotel remains. But to trigger cancellation coverage, most policies require your hotel to be rendered uninhabitable.

“Most travel insurance companies consider a ruined beach or closed attraction to be ‘loss of enjoyment,’ ” Squaremouth said. “Travel insurance only covers specific events that affect your ability to take your trip, such as you having nowhere to stay or no way to get there due to a canceled flight.”

According to InsureMyTrip, 75% of customers will choose a comprehensive travel insurance policy that includes medical coverage, emergency travel services, baggage protection, trip cancellation, and trip interruption coverage.