Covered Reasons

What Does Covered Reasons Mean?

Covered reasons, in the context of travel insurance, are specific circumstances under which the policy provides coverage for trip cancellation or interruption. If a policyholder cancels a trip or cuts it short due to a covered reason, the insurance company will reimburse eligible travel expenses up to the policy’s coverage limit.

Insuranceopedia Explains Covered Reasons

Travel insurance plans typically bundle covered reasons for trip cancellation or interruption into a comprehensive package. These reasons may include, but are not limited to:

• Illness or injury of the policyholder, a travel companion, a family member, or a business partner.
• A natural disaster affecting the travel destination.
• Bankruptcy or closure of the travel provider.
• A terrorist attack or government-mandated evacuation at the destination.
• Jury duty, a subpoena, or military deployment.
• Loss of accommodations at the destination due to the illness, death, or hospitalization of the host.
• Being required to work, termination of employment, or job transfer.
• Damage to or burglary of the policyholder’s residence or business.
• Legal separation or divorce.
• Theft of a passport or visa before the trip.

Whether something counts as a qualifying natural disaster depends on the specific wording in the policy, which is also the case on the homeowners side, where coverage for natural disasters varies by peril and region. Since damage to your home while you’re away is itself a covered reason on most travel policies, it’s worth taking steps to protect your home before you leave on vacation so a small problem doesn’t become a claim on two policies at once.