What You Need to Know: Does Travel Insurance Cover COVID?
With COVID cases surging across the globe, many travelers are left wondering whether travel insurance covers COVID-19. The pandemic has brought about various travel restrictions, canceled flights, and unpredictable circumstances, making travel insurance more critical than ever before. With that in mind, let’s dive into a few important facts and insights surrounding COVID-19 and travel insurance.
Travel Insurance vs. COVID-19
In most cases, travel insurance policies cover medical expenses incurred while traveling. Likewise, trip cancellation coverage will reimburse you for non-refundable expenses if you need to cancel your trip for a covered reason – usually sickness, injury, or death. Unfortunately, COVID-19 is not always considered a covered reason under standard trip cancellation policies. Moreover, most insurance companies classify COVID-19 as a foreseen event, which means that travel insurance policies purchased after March 11, 2020, may not provide coverage for COVID-19-related claims.
However, some travel insurance providers offer Cancel for Any Reason (CFAR) coverage. Though this is usually an add-on or separate policy, CFAR policies allow travelers to cancel their trip for any reason and receive reimbursement for non-refundable expenses, usually up to 75% of the total cost. Thus, if you purchase a CFAR policy and decide not to travel due to COVID-19 concerns, you would usually be covered for a certain extent.
Medical Expenses Coverage
Most travel insurance policies usually include coverage for medical expenses incurred while traveling. However, travel insurance policies may not cover COVID-19-related medical expenses if it is deemed a pre-existing condition. Thus, if you contract COVID-19 before purchasing travel insurance, you will not be covered for COVID-19-related expenses. Besides, some policies have exclusions for pandemics or epidemics, which would limit or eliminate coverage. If you are purchasing travel insurance, be sure to check on the coverage details related to COVID-19 outbreaks explicitly.
Quarantine Coverage
COVID-19-related travel restrictions and quarantine measures have brought up questions about whether travel insurance covers quarantine costs. There are few insurance companies that offer coverage for quarantine costs incurred while traveling. Several travel insurance policies cover additional expenses incurred due to unexpected quarantine, such as additional accommodations, meals, and transportation to the airport. Still, travelers should note that most standard travel insurance policies don’t cover quarantine costs incurred before travel, as it’s considered a known circumstance.
Conclusion
While travel insurance can be a valuable investment for any traveler, it’s essential to research and compare policies upfront and scrutinize each policy detail that applies to COVID-19 carefully. Always review what is included under the policy and what is not, along with any restrictions and exclusions related to pandemics and epidemics. And, as always, be cautious and follow all recommended health guidelines to minimize your risk of contracting COVID-19 while traveling.
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