Summary
A comprehensive guide to what is and is not covered
Among the various hazards encountered while traveling, earthquakes are notably among the most catastrophic. These seismic events can inflict extensive damage and pose severe threats to life with little to no warning. Statistical analyses indicate that earthquakes rank as the second most significant natural disaster threat globally, endangering up to 283 million individuals worldwide. Moreover, several prominent tourist destinations exist under the persistent risk of earthquakes, including California, Japan, and Indonesia.
Although these areas are more susceptible to earthquake-related damage, historical evidence demonstrates that such disasters can occur anywhere. For instance, in 2015, a significant earthquake devastated Nepal, resulting in hundreds of fatalities and displacing numerous individuals. Additionally, a major earthquake in Ecuador in 2016 led to approximately 600 deaths and over 2,500 injuries.
When an earthquake occurs, travelers who have acquired travel insurance can obtain essential assistance while in a foreign country. A suitable policy may help travelers reconnect with family, evacuate the affected area, and return home safely.
However, travel insurance is not without its limitations. A lack of understanding regarding the extent of coverage may leave travelers in a precarious situation, contrary to their expectations.
Before embarking on a journey to a region prone to earthquakes, it is imperative to comprehend the specifics of what your travel insurance policy encompasses. Below are some frequently asked questions concerning earthquakes and travel insurance.
Will my travel insurance policy cover earthquakes?
In most instances, travel insurance policies will encompass earthquakes within their provisions for natural disasters. According to travel insurance broker Squaremouth, a majority of travel insurance policies offered by leading providers classify earthquakes as unforeseen natural disasters. Consequently, should an earthquake occur during your travels abroad, travel insurance can provide necessary support.
However, it is crucial to note that most travel insurance policies will only provide coverage for earthquakes if the policy is secured prior to the trip and before the occurrence of the earthquake. When an earthquake transpires, most insurers deem the situation a “known event.” As a result, nearly all travel insurance providers will not extend benefits for policies purchased after the event’s occurrence. Therefore, travelers concerned about their security while traveling should always acquire a travel insurance policy early in the planning process.
Will my travel insurance policy cover aftershocks?
Similar to earthquakes, aftershocks frequently follow in the days and weeks subsequent to an earthquake, typically with little to no warning. Although most travel insurance policies address both events similarly, the specifics of coverage depend on the timing of the policy purchase.
If a travel insurance policy is acquired before the initial earthquake, both the primary earthquake and its resultant aftershocks are generally covered. As a result, travelers can access their full range of coverage in the event of debilitating aftershocks after an earthquake, provided they have the appropriate policy.
Conversely, when a travel insurance policy is obtained after the occurrence of the initial earthquake, coverage for aftershocks will not be provided. Since the earthquake is classified as a “known event,” travel insurance providers typically waive coverage for aftershocks within a specific duration following the initial event. Given that aftershocks are associated with the primary earthquake, any travel insurance purchased post-event would not extend coverage to aftershocks.
What benefits can help me after an earthquake?
According to Squaremouth, there are five primary benefits that travelers can utilize following an earthquake: medical assistance, evacuation support, trip interruption compensation, and trip delay assistance.
In the immediate aftermath of an earthquake, a travel insurance policy can facilitate access to the nearest emergency medical services. Although the insurance may not cover upfront treatment costs, it can provide guarantees of payment and reimbursement for incurred expenses, ensuring coverage for the traveler. Should medical evacuation or air ambulance services be required, medical evacuation benefits can assist in transporting travelers to appropriate medical facilities for treatment of injuries.
Numerous policies also incorporate a natural disaster evacuation benefit, permitting travelers to relocate to a safe location and ultimately return to their home country. This benefit proves invaluable in areas prone to natural disasters, as the U.S. embassy typically does not assist with evacuation following such events.
Lastly, trip interruption and trip delay benefits can alleviate some costs incurred due to trip-related disruptions caused by disasters. Trip interruption benefits enable travelers to organize their return home after an earthquake under specific conditions, including government-ordered evacuations or the closure of their lodgings. Conversely, trip delay benefits can help mitigate expenses if travel is hindered due to the disaster, with certain benefits taking effect after six hours of delay.
Would credit card travel insurance offer more benefits?
While many travelers already benefit from travel insurance coverage through their credit cards, these policies function similarly to those acquired from third-party providers. Although the levels of coverage may align, the application and claims processes can differ considerably.
Furthermore, additional coverages (such as cell phone damage) may also be voided due to earthquake-related incidents. Although Citi provides a comprehensive level of travel insurance for cardholders who use their cards for transactions, their cell phone replacement benefit will not be applicable in cases of loss caused by floods, earthquakes, or similar natural disasters.
Prior to making arrangements with a credit card policy, travelers are advised to review which events are included in their coverage and which are explicitly excluded. This knowledge will enable travelers to select the most suitable policy for their needs.
Can I cancel my trip because of an earthquake?
While trip cancellation benefits might be accessible after an emergency situation, the occurrence of an earthquake alone does not suffice to justify canceling travel plans. Travelers must be directly impacted by the event to fully cancel their trip.
Under a majority of travel insurance policies, Squaremouth indicates that a cancellation may be warranted in three specific scenarios influenced by the earthquake. First, significant delays in reaching the affected destination may qualify for cancellation, with a delay defined as ranging from 12 hours to two days. Second, if accommodations like hotels are damaged and rendered unsafe, travelers may be eligible for trip cancellation. Lastly, a government-imposed evacuation order following the earthquake may also warrant cancellation of travel plans.
For travelers apprehensive about visiting a location post-natural disaster, most travel insurance policies offer a Cancel for Any Reason provision available for an additional fee. Though this feature must be purchased early and incurs a nominal cost, it enables travelers to recover a substantial portion of their travel-related expenses in the event that they decide to cancel their plans.
Despite the potential for an earthquake to occur at any moment, travelers need not feel stranded or uninformed regarding how travel insurance could assist them. Through diligent planning and thorough preparation, travelers can maximize the advantages of their travel insurance policies – regardless of where seismic activity may arise next.
