Holiday Insurance Vs Homeowners Insurance

It’s amazing how many people don’t take the time to go out and get the facts before they assume their homeowners insurance has them covered while they’re on vacation. That’s what they pay their premiums for, right? Well, yes… and no. You’d be amazed at how many gaps pop up in your homeowners insurance coverage when you start talking about going on vacation. That’s why it’s a good idea to pick up holiday insurance as backup to make sure your very merry Christmas doesn’t turn into a holiday you’d rather forget!

Homeowners Insurance

Here’s the short story on your homeowners insurance. It’s HOMEowners insurance. Not VACATIONowners insurance, not traveler’s insurance, homeowners insurance. It’s designed to protect your home, which means over vacation your insurance will make sure:

a) If your house becomes the victim of Christmas crime (criminals love the holidays just like everybody else) you’ll be able to afford to fix your windows and doors and replace anything they might have walked off with.

b) If your house goes up in flames because of something that you didn’t do intentionally, you’ll have somebody standing by ready to help you pay the often exorbitant rehab fees to get things put back together.

c) If your pipes burst while you’re gone and water damage completely destroys your home’s interior while you’re out of town, you’ll be able to put the soggy, wet mess back together again.

d) If someone steals the speakers out of your trunk, your car blows up or some other dastardly event destroys everything you were storing in your back seat, you’ll be able to afford to replace it all.

You’ll notice that your luggage, plane tickets and money orders are nowhere on this list. That’s why you need to supplement your homeowners insurance with…

Holiday Insurance

Also known as traveler’s insurance or vacation insurance, holiday insurance is there to plug all the gaps your homeowners insurance leaves wide open. Your holiday coverage is designed to cover the contents of your luggage if it gets looted when you’re traveling (including the camcorder you stuffed in your coat pocket). If you’re taking thousands of dollars worth of clothes, toys and electronics with you (cough… Christmas presents… cough) you’re going to want holiday insurance backing you up.

Of course, keeping your belongings safe from the criminal underworld isn’t the only thing your holiday insurance will do for you. You know all those pesky little fees they like to slap on you for canceling your reservations at the last minute? All the expenses that pop up when you miss your flight and have to book a new one? The hassle and aggravation of unexpected layovers when weather and mechanical failure interfere with your flight plans?

All of that’s covered by your holiday insurance, making it an awesome complement to your homeowners insurance and a very worthwhile investment toward your holiday peace of mind. Hey, you’ve got enough driving you crazy this Christmas. Isn’t it nice to be able to take at least one thing off the list?

Golf Vacation Insurance – Are You Covered?

As golf gets more and more popular world-wide, the chances of being injured or becoming the victim of a crime increases as well. It has been estimated that there are almost 30,000 golf related injuries each year requiring hospital treatment, and that several millions of dollars worth of expensive golfing equipment is stolen every year from golf courses or clubhouses.

If you are traveling abroad for a golf vacation, you have the added risk of your clubs being lost, damaged or stolen in transit. You have to ask yourself if you have adequate insurance cover should you lose your golf clubs or injure someone or their property – be honest now!

The increasing popularity of golf is also adding to the problem. You are much more likely nowadays to find new golfers out on the course that might not be quite as aware of the dangers that face them. These new golfers are far more likely to stray onto the course when you are playing a shot and get injured, it wouldn’t be your fault, but the result would be the same.

Many courses are situated near hotels or very close to private houses, how many of us can honestly say that we have never pulled a shot wildly that has landed in someone’s front yard? Your household insurance would not cover you for damage or loss sustained on a golf course.

Golf is an expensive game to play on a normal basis, but if things go wrong and you don’t have adequate insurance, the potential costs involved could be astronomical. You need to ensure that you have cover against loss, theft or damage to your golf clubs and other equipment, but most importantly you must ensure that you have sufficient cover against damage to other people or their property.

Irrespective of your ability as a golfer, when you are out on the course there is a risk that you will unintentionally cause harm or injury to a fellow golfer. If you do, and you are uninsured, the consequences could be horrendous – and the need to be insured is equally important whether you are playing at home or abroad on a golf vacation. Think about it, if you are in Spain and you accidentally injure another foreigner with your golf ball, that person might have to be airlifted back to their own country – that cost alone could run into tens of thousands of dollars.

There are certain basics that you need to consider when you are purchasing insurance for your golf vacation:

1. Does the policy protect you and your golf equipment from damage, theft or loss 24/7 anywhere in the world?

2. Does the policy cover you to play on any golf course or driving range 24/7 anywhere in the world?

3. Does the policy cover all your golf equipment if it is lost or stolen while unattended or in transit 24/7 anywhere in the world?

You should be able to arrange golf insurance for your vacation that will also cover you for playing at home for the price of a few dozen golf balls – it’s a small price to pay for piece of mind and could guarantee that your golf vacation goes smoothly.

Vacation Insurance… Saves Your Money, Time And Frustrations!

Don’t forget your vacation insurance before you take off for any travel.

I am very serious when it comes to insurance, I do not want to take any chances, I grew up in a family with my mother as a sole bread winner, my Dad passed away when I was 10 years old without any insurance. Life was very very difficult then.

So the same goes with vacation insurance too!

It can cost you an extra few thousands of dollars if the cruise or tour operator goes bankrupt, or if you need to shorten your vacation due to sickness or injury.

Quick Tip

The biggest myth would be that your normal health insurance covers you when you are away, or that since many travelers visit an area or region, access to medical care is easy or affordable.

Here’s a quick guide to understanding what a good vacation insurance should cover for any travel.

1. Travel Curtailment

If you or an immediate family member becomes seriously ill or is injured during the vacation most vacation insurance companies would reimburse you for the unused portion of the vacation.

2. Travel Cancellation

You would be reimbursed if the cruise line or tour operator goes out of business. It would also reimburse you if you have to cancel the vacation due to sickness, a death in the family or other calamity listed in the insurance policy.

Travel cancellation is very different from a Cancellation Waiver that many cruise and tour operators offer. Waivers are relatively inexpensive. They provide coverage if you have to cancel the trip, but they have many restrictions.

They must be purchased when you book the trip and will usually not cover you immediately before departure. Most importantly, waiver is not insurance.

2. Personal liability

Personal Liability is important in case of legal liability, arising out of one’s negligence in causing a third party injury (or death) and/or third party property damage.

Some traveler insurance companies even insure against the loss or theft of golfing equipment and laptops.

3. Luggage/Baggage/Flight Delay

This feature comes along with a “Time” excess, meaning that the traveler insurance companies only compensate when the delay exceeds a certain time frame. The limit for loss of luggage/baggage/flight varies, usually with a cap for individual items.

4. Emergency & Medical Assistance and Information Service

Look for those 24-hour services that offer information on visa requirements, foreign exchange, weather forecasts and medical advice et cetera.

Emergency evacuation is very helpful indeed for inexperienced travelers or travelers with medical conditions or for those who are traveling to more remote and less traveled places.

These service centers may also offer emergency assistance in the form of embassy, legal, interpreter and medical referrals.

Most vacation insurance policies would compensate a couple of hundred dollars for each day of hospitalization up to the maximum limit indicated in their respective packages.

This is solely to compensate the traveler for the number of days spent in a hospital overseas and should not be mistaken as hospital or medical reimbursement, which takes care of the hospital and ward charges.

4. Accidental Death insurance

Personal accident coverage, which is to compensate the insured for permanent or temporary disablement or death as a result of an accident.

2 Main Types of Vacation Insurance

Annual Policy

Most traveler insurance companies offer vacation insurance on annual basis as well as per trip basis. Annual policies cover unlimited trips made by the insured during the entire year provided that each trip does not exceed a certain number of days, usually 90 days.

No declaration is required.

For frequent flyers, this type of cover would be most ideal in terms of cost and convenience.

Family Vacation Insurance

Family packages are also designed to cater for immediate families traveling together. Definition of immediate families would mean you, your spouse and your children.

Family vacation insurance are usually priced lower premium than if individual insurance policies were to be taken up for the whole family.

Special Features ALERT!

Go for vacation insurance policies come with higher deductible and this translates into lower premium.

The worst case scenario is you may end up having to bear the first $40 or $50 of every claim that you make.

Deductible: (Also known as Excess in UK, NZ, AU) This is the amount that the insured must pay before the vacation insurance starts paying for your claim.

This may be an annual amount, an amount for the duration of the policy, or an amount for each incident. Choose the latter.

For those of you who intend to engage in water or winter sports during your vacation, it would be wise to take up your insurers who offer free coverage for such activities.

Some traveler insurance companies may charge an additional premium for this extension, so it is better to check this point before you effect your cover.

Unfortunately, the definition of water sports in the typical travel policy does not include scuba diving.

Not surprisingly, bungee jumping is excluded from most policies. Watch out for age limits imposed by some traveler insurance companies, meaning that persons exceeding a certain age are excluded from their coverage. But if you belong to this elderly group, fret not.

There are traveler insurance companies that do not impose any age limit and offer the same coverage at no additional premium loading.

A unique coverage that is being offered in the traveler insurance market is the “Car Rental Excess”. This feature takes care of the excess amount that the insured normally has to bear (under the motor policy taken up at car rental companies) in the event of damage to the rented vehicle while driving overseas.

Price of Vacation Insurance also known as Premium – Premium Computation

For “per-trip” policies, the premium payable hinges considerably on the number of days of travel, the country of destination and choice of plan.

For example, if you are from Europe, a vacation in USA warrants a much higher premium than a trip within Europe for the same number of days.

Some traveler insurance companies provide the option of higher limits of coverage at of course, a higher premium.

If price is of concern, it is advisable to keep on hand the premium schedule from a few traveler insurance companies for comparison before you activate your insurance before each trip.

Claim Procedure

I consider this the most important aspect of buying a vacation insurance.

All traveler insurance companies will require you to lodge your claims within a certain time frame. You would be required to complete and submit a claim form, which can be obtained from the traveler insurance company.

In almost all instances, your claims must be accompanied by relevant documents, such as medical receipts for medical reimbursement or hospital cash; a police report for loss of money or personal documents; an official letter from the airline in cases of flight or lugguage delay and loss of lugguage if within custody of the airline.

In all cases, call up and inform your traveler insurance company immediately for necessary advice.

There you are… now with a basic knowledge of vacation insurance, you are equipped to choose the best suited to your travel needs and you are all set to fly!