Cancel for Any Reason
In the past couple of years "cancel for any reason" coverage has gotten a lot of press however, there is some confusion concerning this coverage. First of all, it does not replace "trip cancellation" coverage but augments it. Think of CFAR as a safety net that sits below your trip cancellation coverage and provides some coverage if you have to cancel a trip due to a reason that is not listed as a covered reason or one that is specifically excluded by the policy. This coverage is usually offered as an option that can be added to a basic travel insurance plan that includes trip cancellation coverage. CFAR has specific pre-conditions that must be met in order to qualify for coverage. During the claim process the insurance company will examine your information to see if you have meet these conditions. They usually include:
- coverage must be purchased within the specific required time period following first trip payment;
- you must insure your trip to it's full, pre-paid cost; and
- if you cancel for a reason that is not otherwise covered by the trip cancellation coverage than you must do so 48 hours or more prior to your scheduled departure.
What to expect at claim time
At the time of a claim the insurance company will require that you prove to them that you met the pre-conditions listed above. They will want copies of your cancelled checks or credit card statement showing when everything was paid and the total that was paid. They will also require proof that the money is non-refundable so they will ask for any written brochure or flyer that you have that shows a what the cancellation charges. In addition they will also ask for copies of any refunds that you might have received.
Keep in mind that all CFAR plans have co-payments(that portion that is not covered). They range from 10% to 50% depending on the plan that you've purchased.
NOTE: Do not use this benefit if your cancellation is caused by a trip cancellation covered reason. If your loss is caused by a trip cancellation covered reason (peril or hazard) and it's not specifically excluded than the insurance company must pay you 100% of your loss up to the trip cost you insured.
Note: CFAR is for cancellations only - it does not provide protect once you have gotten within the 48 hour window prior to your departure or after you have departed.