Caribbean Insurance
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Unit 1, Topic 2

What Travel Insurance Covers (and Doesn't)

What You'll Learn

Identify the core coverage areas of a standard travel insurance policy
Recognise common exclusions that catch travellers off guard
Understand how pre-existing medical conditions affect travel cover

Core Coverage Areas

Trip cancellation — Reimburses non-refundable costs if you must cancel before departure due to illness, injury, death in the family, or covered events like hurricanes.

Trip interruption — Covers additional costs if you must cut your trip short and return home early.

Emergency medical — Pays for hospital treatment, doctor visits, and medication abroad. Essential because your domestic health insurance typically does not cover you in another country.

Medical evacuation — Covers the cost of transporting you to the nearest adequate medical facility or back home. Inter-island air ambulance flights in the Caribbean routinely cost $20,000–$80,000.

Baggage loss/delay — Reimburses you for lost, stolen, or delayed luggage and essential items you need to purchase.

Travel delay — Covers meals, accommodation, and other expenses if your flight is significantly delayed.

Common Exclusions

  • Pre-existing medical conditions (unless declared and accepted)
  • Extreme or adventure sports (unless specifically added)
  • Travel to countries with government travel warnings
  • Claims arising from alcohol or drug use
  • Losses from unattended baggage
  • Hurricane damage if the storm was named before you purchased the policy