If your trip is cancelled or interrupted due to some circumstances not in your control, then it's important to know what's covered by your trip cancellation insurance policy. Trip cancellation insurance provides coverage for (1) trip interruption, (2) misconnection, and (3) delayed return.
My travel insurance offers either package tour insurance or separate insurance plan for trip cancellation/interruption.
Package tour insurance
Package tour insurance provides all-inclusive coverage for (1) trip cancellation, (2) medical emergencies and (3) baggage loss/damage. Trip cancellation coverage by package tour insurance covers
1. Trip cancellation PRIOR to departure. For example, if a flight is cancelled or you have a emergency situation not allowing you to travel. At the time of purchasing policy, you have to provide up to which amount you want to cover prior to departure. For example, if you have purchased airline ticket for $2,000 and want coverage for that in case of trip cancellation then provide this amount at the time of purchase.
2. Unlimited coverage AFTER departure. If during travel you have experienced some interruptions or cancellation, then coverage is available for all your expenses given some terms and conditions.
Separate Plan: Trip cancellation insurance
My travel insurance offers three different trip cancellation coverage options:
1. Trip cancellation prior to departure (Prior departure coverage amount is provided at the time of purchase) and $800 AFTER departure.
2. Trip cancellation prior to departure (same as above) plus $1500 AFTER departure.
3. Trip cancellation prior to departure (same as above) plus unlimited coverage AFTER departure.