Cancellation insurance for your holidays is something that might seem pointless -- unless your holiday is actually cancelled. Imagine the disappointment of having an expensive trip of a lifetime cancelled at the last minute and watching your money disappear right along with the chances of a restful, relaxing vacation. Cancellation insurance gives you the peace of mind that even if the worst happens, you won't lose any of your hard-earned cash.
Types of Cancellation Insurance for Holidays
Flight or hotel cancellation: Basic cancellation insurance for holidays typically covers the costs of flight or hotel cancellations, and will reimburse up to a certain amount for any other associated expenses. For example, if your flight is cancelled, you can receive reimbursement for the costs of any missed nights at your hotel.
Cancellation of a package deal: You can purchase cancellation insurance that will reimburse a set amount if a package deal is cancelled -- for example, if the company offering the package goes bankrupt before the trip.
Missed and delayed departure: Some types of cancellation insurance will reimburse travellers for missed and delayed departures. If your flight is delayed for an extensive amount of time -- usually over 12 hours -- or you are unable to make it to the airport on time for reasons beyond your control, you may be eligible for reimbursement.
Curtailment: Cancellation insurance may also pay for expenses incurred with cutting short a holiday for reasons beyond your control. This option typically relates to bereavement, when a traveller must curtail a planned holiday due to a death in the family.
Cancellation insurance for holidays generally does not pay out if the reason for cancellation was within the travellers control. Changing your mind, or missing your flight because you didn't leave on time are reasons that will likely be denied by the insurance company. Typically, your trip must have been pre-booked and be for pleasure, not business, to meet the criteria for reimbursement.
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