To stop from spending more than necessary on a policy, Squaremouth recommends that you only insure the expenses you would lose if you can’t take your trip. For example, if a hotel requires a 50% penalty to cancel a hotel reservation, travelers should insure just that amount, rather than the full cost of the hotel.
Trip Segments Can Vary in Value
“When you’re booking travel with multiple legs or elements, we do recommend purchasing travel insurance for all facets of the trip, including coverage for all prepaid, non-refundable costs, such as air, hotel, cruise, resort or any other travel-related costs of your trip,” says Scott Adamski, a spokesperson for AIG Travel.
An example would be a traveler flying to the Caribbean for a $5,000 resort stay. For example, say you have a cheap flight for an expensive, week-long resort trip. You may be thinking about just insuring the resort stay. But if the flight is also covered, and the flight is canceled for a reason covered by the policy, the policy could reimburse you for the resort costs as well as flight cancellation costs.
While travel insurance for the expensive lodging would likely be a traveler’s focus during the planning process, it’s also important to remember the other elements of the trip, and Adamski suggests insuring the entire trip and doing so under one policy.