At the end of this article, you will find a table outlining the financial
default coverage for all major travel insurance companies and their products.
Your renters insurance policy is written with actual cash value because that's the
base default coverage.
Round out the coverage by purchasing early (within 15 days of initial trip deposit) and gain pre-existing medical coverage and financial
default coverage at no extra cost.
Here is a listing of most major travel insurance companies and their individual plans, as well as the financial
default coverage provided.
Travel default coverage will prevent such incidents from ruining travel plans by providing compensation for extra expenses incurred in engaging a new travel supplier.
This coverage is called replacement cost, and most standard homeowners insurance policies offer this
as default coverage for your house.
When the travel insurance is purchased from the travel supplier, then financial
default coverage does not apply to that travel company.
Financial
default coverage means you are unable to travel or suffer financial loss because travel provider goes out of business.
Your renters insurance policy is written with actual cash value because that's the
base default coverage.
Check your policy to make sure
financial default coverage is provided There are many different travel insurance companies, and each company has several products.
Before we outline what financial
default coverage covers, it's important to understand that financial default is not the same as bankruptcy.
Many of Travel Guard's retail insurance programs include financial
default coverage if the program is purchased within 15 days of making the initial trip deposit.
Jill had purchased travel insurance protection with financial
default coverage and was able to get reimbursement for her pre-paid travel costs.
Additional benefits such as a waiver of pre-existing conditions or financial
default coverage may be available if you purchase your travel insurance plan within 15 days of your initial trip payment.
This is because some travel insurance plans include bankruptcy with their financial
default coverage and some do not.
To benefit from financial
default coverage and pre-existing medical condition waivers, travelers should get their travel insurance as soon as they start planning and paying for the trip.
Buy travel insurance as soon as possible Regardless of the financial
default coverage, it is always recommended that you purchase your travel insurance policy as soon as possible to take advantage of all the coverage.
Most basic homeowners insurance policies offer
the default coverage of actual cash value for personal property.
These two benefits are a pre-existing condition waiver option and financial
default coverage.
Financial
default coverage can help to reimburse for any losses due to a travel supplier filing for financial default and stopping services.
Each policy's Financial
Default coverage is summarized below.
In other words, if your cruise line or another travel supplier related to your cruise goes bankrupt, financial
default coverage would allow you to potentially recover the money paid to that travel supplier.
Similarly, it also includes financial
default coverage, which will reimburse trip cost due to a travel supplier ceasing operations due to financial circumstances.
Other additional benefits are included if you purchase the plan within 15 days of first trip payment such as pre-existing condition waiver, financial
default coverage (for trip cancellation and trip interruption), and accidental death and dismemberment - common carrier air only (not available in all states).
However, financial
default coverage is a time - sensitive benefit, so be sure to look into purchasing your travel insurance as soon after you make your first trip payment.
Financial
Default coverage is included by some policies under the Trip Cancellation and Trip Interruption benefits.
For financial
default coverage, travelers need to make their initial insurance payment within 14 days of booking the first parts of their trip.
One of the things that locals need to take the time to do in this process is to evaluate whether
the default coverages offered are going to be enough.
You may be eligible for the pre-existing conditions waiver, financial
default coverage and accidental death and dismemberment - common carrier air only if this plan is purchased within 15 days of your first trip payment, among other requirements.
Actual cash value is often
the default coverage included in a renters insurance plan.
It simply means that you are not going to be covered under
your default coverage.
One such coverage would be to purchase additional personal property insurance, because
the default coverage in a home insurance policy is not usually sufficient to protect your belongings in the event of a total loss.