Really Nice Vacations

Read a really informative post on terrorism in travel insurance by Robin Bal of Fortune Watch. I have extracted a huge chunk from his blog post but it’s best if you can visit his blog to read the full article.

It is worth taking the time to understand how terrorism is dealt with in your travel insurance policy if you are considering buying travel insurance for a future trip or you already have travel insurance and are about to travel or are considering canceling a trip because of the threat of terrorism.

Speaking of not being covered, if a policy you are considering says that it covers acts of terrorism but then has a huge laundry list of exceptions, you might want to look elsewhere. If you are considering buying a policy you should find out exactly what it does and what it does not cover by asking for a copy of the document and reading it carefully, paying particular attention to the exclusions or contacting the insurance company directly.

In your policy ‘exclusions’ are things you will not be covered for? A general rule with exclusions is ‘the more exclusions (or the wider the exclusion), the less the cover’. If your policy contains exclusion for ‘terrorism’ then just what violent acts are you covered for? The answer depends on what acts are considered to be ‘terrorism’.

Some insurance policies define ‘terrorism’ to include many acts, for example, as ‘a violent act or a threat of violence used by a person or organization to promote their cause or beliefs’. Sometimes ‘terrorism’ is defined to even include ‘military force to prevent terrorist attacks’.

You are covered for a larger range of violent acts if terrorism is an exclusion in your policy and only a small range of acts are defined as ‘terrorism”.

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