For the survivors of the 4,000-plus passenger Costa Concordia that recently capsized near Italy, many were left without personal belongings, identification, money and other possessions. To return home—much less recoup the cost of vacation and travel—may be difficult for most unless they have a proper travel insurance policy.
Here are some frequently asked questions about travel insurance:
What is trip cancellation insurance? Trip cancellation insurance is financial reimbursement of prepaid, non-refundable travel costs in the case of an unforeseen event causes a trip cancelation.
What is trip interruption insurance? Trip interruption insurance is financial reimbursement for unused prepaid travel expenses and/or the additional airfare to return home in the case of an unforeseen event that causes a trip to be cut short.
When is protection from an act of terrorism an included coverage? When a politically-motivated terrorist attack occurs in a city listed on a travel itinerary. The event must occur after the policy takes effect and within 30 days of departure.
Who is considered a family member under the policy? Any of the following relatives of the insured or traveling companion is considered a family member under the policy: a legal or common law spouse, domestic partner, parent or legal guardian, step-parent, grandparent, parents-in-law, grandchild, natural or adopted child, foster child or ward, step-child, children-in-law, brother, sister, step-brother, step-sister, brother-in-law, sister-in-law, aunt, uncle, niece or nephew.