Crucial Travel Insurance Advice and Tips

Recently, one of the Spratt Financial Services team was away on a two week vacation in the USA and Canada and though he couldn't quite believe his bad luck, his circumstances give a crucial insight into the necessity of travel insurance anytime you're abroad. Even moreso, it emphasises what to do and what not to do when something goes wrong while overseas.

All circumstances below are real and actually occurred during his travels.

1. Expenses Caused by Flight Delay.

The first incident came when he was flying from Los Angeles to Atlanta. In mid-air the flight was re-directed to Charlotte because inclement storms wouldn't allow the plane to land safely in Atlanta. He was grounded in Charlotte for 8 hours before the airline organised another flight to get to Atlanta. It arrived at 2:30am. Since his organised lift from the airport to where he was staying had fallen through over the delay, he was forced to book an unexpected night's accommodation at the closest airport hotel he could find in Atlanta.

What to do: Some insurers require confirmation of delay or cancellation from the airline, so make sure you get written confirmation from the airline that your flight has indeed be rescheduled or delayed. Also, keep your boarding pass and ask the hotel for a receipt confirming the cost of the stay and payment. This will ensure you have all necessary information and your claim will proceed smoothly.

2. Lost or Mishandled Baggage.

On a separate flight in the USA, our unfortunate traveller landed and after waiting 30 minutes for his baggage, realised it had not arrived. It turns out it had been put on the wrong flight and redirected to New York City instead. The airline couriered the bags to him 48 hours later to where he was staying in the US and luckily, the contents were undamaged and complete.

What to do: If your baggage is lost or damaged and you have to buy additional supplies/clothing/toiletries/necessities because of it, keep all purchase receipts. To be safe, don't be extravagant in your purchases and try to replace things that were in your baggage like for like. If your bags are lost entirely, get a written confirmation from the airline confirming the contents of your baggage and if applicable, what damage has been done.

3. Travel Interrupted Due to Sickness.

Lastly, six days before he was scheduled to return home to New Zealand, he was stricken with a severe stomach virus that caused three consecutive days of vomiting, nausea, weakness and intense stomach pain. He was unable to make the six hour flight from Nashville, Tennessee to Orlando, Florida and had to spend more days recovering in Nashville before heading back to LA and then back to Auckland from there instead. This involved a considerable expense or re-arranged flights, plus losing the value of the flights already booked that he was unable to make.

What to do: If you are severely ill while overseas and think that it may affect your ability to travel, it is crucial that you visit a medical professional and get a medical certificate that states that you are indeed sick and unable to travel. Without this, it is difficult or impossible to prove that you were indeed sick and the insurance may have reason to deny or reduce your claim. Also, keep all records of your original travel plans and all receipts and boarding passes of your new flights/alteration fees and proofs of purchase.

Conclusion: Because he invested in travel insurance beforehand and because he was diligent in keeping all the necessary documents and proofs, our team member was spared a loss of over $1,000. In even worse case scenarios, that cost can be even higher, depending on the seriousness of illness or the costs incurred by unforeseen circumstances.

Travel Insurance is generally inexpensive and well worth the investment, but its vital to be aware that just buying travel insurance isn't all there is to it. It's imperative that you take the time to get the necessary documents, confirmations and receipts when something goes wrong. If in doubt, make sure you always get it in writing. Most reputable travel insurance providers are not looking to deny your claim, but they do require the necessary proof that your travel was indeed disrupted in the way you describe. Be careful, and make sure you read your policy wording before you travel.

If you are worried about your upcoming travel or want the responsibility of claims taken out of your hands, we can be your link to affordable and comprehensive travel insurance and offer you our claims management service completely free of charge. If you're interested or would like a quote, contact us anytime here.

Bali volcanic ash sends crucial message about travel insurance.

Mount Raung in Bali has recently erupted, spewing tons of volcanic ash into the air and wreaking havoc on flights. The eruptions began on June 29th, and their impact has been felt on unfortunate travellers trying to get home for over two weeks now. Those with comprehensive travel insurance, purchased before the cut-off date, will likely find their accomodation, transport and meal costs reimbursed. Those without it find themselves in a sticky situation - having to pay the costs out of their own pocket. Many of these unfortunate travellers will have budgeted on their trip lasting the planned length of time and will be left considerably out of pocket by the eruption.

Impatient travellers wait for flights out of Bali.

Estimates show that 40% of Kiwis that travel to Bali on a weekly basis have no travel insurance. Those who were stranded there could be facing thousands in unexpected costs that could hugely affect their finances and life (after all, lots of us don't have huge cash reserves behind us for a rainy day). 

The lingering Bali ash saga sends a clear message that we all need to be more vigilant about our travel insurance and going without is probably a risk that's not worth taking. I myself discovered this fact on a trip to the United States where my connecting flights were cancelled and I found myself stranded in Los Angeles for two extra days waiting for a new flight home. Being covered ended up saving me close to $1,000 in flight alteration costs and extra accomodation. Those stranded in Bali face far worse due to this lingering and unexpected natural disaster. A secondary message from the disaster is that the lower costs of a basic policy may be tempting, but a comprehensive option may be worth the extra investment. Those with just basic cover stuck in Bali may only receive limited reimbursement, if any.

For those that do have a comprehensive travel insurance policy and face delays while overseas, it's crucial that you get everything possible in writing. This includes confirmation of delays or cancellations from the airline, transport receipts, hotel bills and meal receipts. If in any doubt at all, get it in writing. Also, read your policy carefully (including the fine print) and know exactly what you're covered for before you make decisions so that you won't face any unexpected surprises on your return home.

If you have any questions about travel insurance and what's the best option, you can talk to our travel insurance experts at Hood Insurance Brokers. Above all, be vigilant, know the conditions and be safe. Take the smaller cost of insurance beforehand just to be safe. Travel policies also cover far more than unexpected delays, including lost luggage, theft and medical costs while overseas.

A member of Spratt Financial Group.

New Zealand Insurer Brings back Full Replacement cover for houses.

Tower Insurance has gone against the prevailing wind of house insurers to offer a full replacement option for houses destroyed by fire. Most insurers in the industry moved to a sum assured model at the beginning of 2013, meaning that they would pay out an agreed upon value (the sum assured) if the house was damaged or destroyed by fire. The sum assured model often sometimes not provide sufficient funds to totally replace the value of the house, just going most of the way.

“Being able to provide full replacement for fire means one less worry for homeowners in the traumatic event of a fire,” Tower CEO David Hancock said. “Tower can guarantee your home will be fully rebuilt if it’s destroyed by fire, regardless of the cost or the sum you’re insured for.”

Providing a full replacement option should set Tower apart in the fire and general insurance marketplace and give customers another option for covering their houses which is always a good thing. Tower says that they made the move to bring back full replacement in light of comments from their customers who found the sum assured format confusing. “People want to know that if the worst happened they can at least know that they will get their house back the way it was.”

If Tower's move proves successful, and they can maintain affordability, it will be interesting to see if other insurers follow suit. What do you think of Tower's move? Do you find the current home insurance confusing? Would you rather go with a full replacement option?

Visit our house insurance partners.

Send an enquiry about home insurance.