Types of Travel Insurance Every Luxury Traveler Should Consider

Travel insurance isn’t a one-size-fits-all product. There are several types designed to protect you in different ways. Here’s a breakdown of the most relevant options for luxury travelers:

1. Trip Cancellation/Interruption Insurance

If you have to buy only one type of coverage, this is the one I would say to purchase above all else. Life happens. Whether it's a sudden illness, a family emergency, or a work commitment that can’t be postponed, something might come up that prevents you from going on your trip. Trip cancellation insurance helps you recover non-refundable travel expenses if you have to cancel or delay your trip due to a covered reason. If something happens after your trip starts, interruption insurance will help cover the costs of returning home early or rebooking your travel arrangements.

2. Medical and Emergency Evacuation Coverage

When traveling abroad, healthcare can be expensive and hard to navigate, especially in remote or luxury destinations where world-class medical facilities may be scarce. Before you purchase a special medical insurance policy for your trip, check with your medical insurer — you might already be covered by your existing health plan. (Note: While many US insurers cover you overseas, Medicare does not.)  Also, be sure you're aware of any policy exclusions like preauthorization requirements.

Even if you have coverage in the US, however, purchasing a medical insurance policy for travel may be a good idea for a few reasons. For one, much of what it will cover is supplemental on top of what your regular insurance covers, like deductibles. Secondly, if there is an emergency, which can be quite costly, the hospital or doctor’s office will typically work directly with your travel-insurance carrier on billing (but not with your regular health insurance company; you'll likely have to pay out of pocket, then get reimbursed by your stateside health insurer later). So, unless you have the funds to cover a large expense like this up front, you might want to consider travel medical coverage. For ultimate peace of mind, emergency evacuation coverage ensures you can be flown to the nearest medical facility if necessary.

3. Baggage Loss or Delay Insurance

There’s nothing worse than arriving at your destination only to find that your luggage didn’t make the journey. Insurance for luggage that is lost, delayed, or damaged — is included in most comprehensive policies, and it's rare to buy it separately. There's a strict cap on reimbursement for such items as jewelry, eyewear, electronics, and camera equipment. If you check your baggage for a flight, it's already covered by the airline (ask your airline about its luggage liability limit; if you have particularly valuable luggage, you can buy supplemental "excess valuation" insurance directly from the airline). Baggage coverage can provide reimbursement for recovering or replacing covered personal items.

Homeowners or renters insurance typically covers your possessions anywhere you travel; the baggage insurance covers the deductibles and items excluded from your homeowners policy. Double-check the particulars with your agent.

4. Travel Delay Insurance

If your flight is delayed—whether due to weather, mechanical issues, or other reasons—you could face unexpected costs, like hotel stays or meal expenses. Travel delay insurance helps cover these expenses, ensuring that you don’t have to dip into your personal funds or worry about how the delay might affect your itinerary.

5. "Cancel for any reason" (CFAR) policies

These are policies that became more popular because of COVID.  A CFAR policy usually increases the insurance costs by about 50%. CFAR coverage is hampered by strict requirements — for example, you must purchase it no more than 21 days after booking your trip, and to be reimbursed, you must cancel no later than 48 hours before departure. You'll also only be reimbursed a portion of your prepaid trip cost, usually just 50 to 75 percent. Also, not all states allow CFAR insurance policies, so check first.

A Few Other Things to Keep in Mind Regarding Travel Insurance

·       Policies vary state by state and not all companies are licensed in every state, so do your homework before paying for a policy!

·       Purchase your insurance policy within 7 days of when you make the first payment on your trip.

·       Do you already have coverage elsewhere, and is it enough? Just like with medical insurance, you may have other coverage, for example your credit card company may offer insurance on the flights you booked using your card. But don’t assume your car insurance is going to cover you in Europe if you rent a car.

·       You should know what happens if you change the dates of your trip. Do you need to pay for insurance all over again? Do you lose that money?

·       You should ask what happens if you add items to your itinerary. Will they be covered?

·       Your travel advisor (if you have one) should not be the one to advise you on insurance as they are not a licensed insurance agent. They can only offer you the available products.

Protecting Your Investment

Travel is an investment of time, money, and energy, and the last thing you want is for an unforeseen event to put a damper on your plans. Travel insurance helps to make sure that you’re financially protected, ensuring that you recover the costs of interruptions or cancellations without impacting your overall experience. When you’re paying top dollar for a once-in-a-lifetime vacation, travel insurance isn’t just an option—it’s a necessity.

Investing in travel insurance gives you the freedom to fully immerse yourself in your luxurious getaway without worrying about what could go wrong. It’s the smart way to protect both your plans and your peace of mind. If you need help finding the right travel insurance company, just reach out! I am always happy to give a referral.