US Shutdown Causes Headache for Travelers

Only specific travel insurance covers cancellation due to US shutdown

A question that has been raised since the United States government shutdown is whether or not losses can be claimed for travel insurance purposes. Trips to national parks and other domestic sites are, of course, put in a interesting situation wherein individuals and families were planing their trip around particular sites. These sites are then closed down, and the tourists are unable to view the destinations.

According to one person who had been planning a trip to the Grand Canyon for 18 years, spending $16,000 to make it to the site, was unable to see the site thanks to the closure. It is a horror store to be sure. Others were worried air traffic control and the TSA would also be negatively affected and the entire situation put quite a scare into everyone.

The short answer for the aforementioned question is: No. Trips that were canceled or interrupted thanks to the shutdown were not reimbursed thanks to the “named peril coverage” clause that dictates such reimbursement.

Thanks to the named peril clause, only items listed under a specific list would be reimbursed, and unless one was wise enough to ask for an addendum to be added to cover the event, insurance would not cover it.

The only option that would cover for the shutdown incident was a “cancel for any reason coverage” plan. Even that coverage has caveats and stipulations. The payments are also higher for the insurance itself.

The whole incident has added a new reason to emphasize the idea of having foresight into what fine print should be looked over by travelers. The burden of foresight is on a traveler, and making sure one understands travel insurance particulars is as important as the insurance itself.

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