Lane Montz: Travel insurance may not cover what you think

"My flight was canceled!"

"My cruise was changed!"

"I bought travel insurance, but they are refusing to cover my expenses!"

Does travel insurance cover canceled trips? The short answer, according to experts, is it depends on the policy and the situation.

Don't assume! In the last few years, BBB received thousands of complaints related to travel insurance, many of which occurred because the policy didn't cover the cancellation caused by the coronavirus and/or travel bans to certain countries. According to the U.S. Travel Insurance Association, the cancellation of a trip out of fear of traveling or in relation to travel advisories is typically not covered by these insurance policies.

It's more expensive, but travelers who purchased policies that include Cancel for Any Reason (CFAR) coverage may still have the option to recoup funds.

Pandemics are often routinely listed as exclusions in policies, so read the fine print. In addition, travelers may also contact the airlines and other travel suppliers before filing a claim to see if there are refunds, waivers, or other accommodations offered through those companies.

When thinking about purchasing travel insurance, consider these tips:

Travel insurance is intended to help with unexpected events, not things like forecasted hurricanes. Once an event is a "known event," meaning it's been forecasted or anticipated, it may not be considered a covered reason for cancellation if a traveler books a trip after that date.

Airlines and Cruise Lines have strict policies that you must know. For example, cruise lines may require proof of COVID vaccination or even last-minute COVID testing in order to board your ship. If you arrive without the required proof, you may be denied boarding — and they are usually very strict!

Policies vary. Before purchasing a policy or trying to file a claim, read the specifics on what the policy does and doesn't cover. Contact the insurance company directly with questions.

Read the fine print. If CFAR was purchased, confirm the specific policy wording for all details regarding this benefit before filing a claim.

Be flexible with travel plans. Dates, times and arrangements can change at any given time. Make plans, but leave room for the unexpected.

Visit BBB.org to research companies that offer travel insurance. See their rating and read the complaints filed against them and how they resolved the issues.

If you are planning a trip overseas, check with the U.S. State Department to see if they have issued travel warnings to those countries.

Lane Montz is president and chief executive officer of Better Business Bureau® and Better Business Bureau Ethics Foundation, Inc. in Toledo.