Current tension between the United States and Iran may impact international traveler behavior in coming months. Travel insurance comparison site, Squaremouth, explains what travelers need to know about insurance coverage for future trips during this time of uncertainty.
War and Political Unrest Not Covered Under Standard Policy
Under most travel insurance policies, political unrest and acts of war are excluded from standard trip cancellation coverage outright. This means travelers won’t be reimbursed if they choose to cancel because they no longer wish to travel due to the evolving situation. Unfortunately, if an attack is deemed to be an act of war, no matter where or when it occurs, it will not be covered.
Incident Must Be Declared an Act of Terrorism for Coverage to Apply
Terrorism coverage is included on most standard cancellation style policies. This can allow travelers to cancel their trip if an attack occurs in or near their destination within 30 days of their scheduled arrival. In order for the Terrorism benefit to apply, the U.S. Government or the U.S. Department of State must officially declare an incident as an act of terrorism.
Cancel for Any Reason Can Protect Travelers In Times of Uncertainty
Unpredictable situations like this highlight the importance of considering travel insurance. For travelers still planning future trips, the Cancel for any Reason upgrade is an available option that will allow them to cancel if the tension with Iran escalates. This time sensitive benefit allows travelers to cancel their trip for reasons not covered by a standard policy, including fear of traveling, political unrest or war.
In order to be eligible for Cancel For Any Reason coverage, a traveler must purchase their policy within 21 days of making their first booking. This upgrade typically costs 40% more than a standard trip cancellation policy and will only reimburse up to 75% of the total trip cost, but it is the most lenient option for travelers who want trip protection.
Squaremouth launched the Iran Political Unrest Travel Insurance Information Center to explain travel insurance coverage related to the situation. Information will be updated as the situation unfolds and is subject to change at any time.