Volcano erruption may not be covered.

[happy cruzer]

So it appears that insurance companies and the cruise lines are handling the volcano erruption in various ways.

 

Some cruisers report that their insurance will not cover this because it is a natural disaster (i.e. not weather).

 

Any ideas how this will play out?

[Joy2theWorld]

I am considering purchasing the cancel anytime insurance for this reason alone.

[happy cruzer]

This was posted on another thread it explains some of the policy decisions.

http://www.tripinsurancestore.com/blog/

[msmayor]

Its interesting to note too that this is precisely one of those situations where folks who opted to wait until final payment to purchase their trip insurance may find themselves without coverage. Those who gamble on the idea that they have no pre-existing conditions or anticipate any problems, and don't want to spend the money up front could now find themselves gambling on making their trip.

 

It appears that every insurance company out there has a statement that any policy purchased after April 15 will NOT include coverage for problems related to the volcano eruption, as it is now a known event. For those who reserved a cruise months or even a year ago and are now approaching final payment and their intended insurance purchase, they cannot get coverage for problems related to the volcano.

 

Had they purchased a policy at deposit though, from a company treating this as a weather event or otherwise providing coverage, its likely they'd be safe.

[alexandra cruiser]

I m ,sad to say, one of those that thought my credit card coverage of $2500 per person cancellation would handle the majority of cruise,so didnt get more....now too late to get coverage,see above...also,,, can t get the cancel for any reason,,unless purchased 14 days after initial deposit.....now must hope the airline will refund whole thing and cruise,too...or credit for another....what a mess....but have learned a valuable lesson...will buy it at deposit.....sadly, this will be an expensive mistake if problems stick around till June.....:eek:

[AlexandNessa]

Does anyone want to guess how long this volcano has to be dormant before it is no longer considered a "known condition?" We buy insurance at time of final payment and our final payment is coming up this week for a Transatlantic cruise in September.

[Joy2theWorld]

I m ,sad to say, one of those that thought my credit card coverage of $2500 per person cancellation would handle the majority of cruise,so didnt get more....now too late to get coverage,see above...also,,, can t get the cancel for any reason,,unless purchased 14 days after initial deposit.....now must hope the airline will refund whole thing and cruise,too...or credit for another....what a mess....but have learned a valuable lesson...will buy it at deposit.....sadly, this will be an expensive mistake if problems stick around till June.....:eek:

 

Why will your coverage through your credit card company no longer apply?

[npb]

Which credit card companies cover cancellations?

[Ontariotrekker]

Which credit card companies cover cancellations?

Platinum or higher American Express, some Visa

[alexandra cruiser]

It should still apply, but have never used that portion of travel insurance that you get when you purchase with the card,,,sure some details left out so that they can wiggle out of it....I was just saying it won t cover total cost if cruise doesn t sail....will be out another $6.000 , not inc. airline,...needless to say, expensive cruise on SeaDream....

We had travel ins.for Egypt trip and they wouldn t cover for cancellation even tho travel warning by State Dept. given,,,,said the ins.co. was the one to determine it.....so have not purchased since...have been lucky so far.....a lot of people in same boat, literally, I bet......:(

[cruiseco]

Platinum or higher American Express, some Visa

 

In Canada yes, in US rarely, if ever. Different regulations down here generally prevent that.

[erdoran]

I just talked to the trip insurance store and I can buy "cancel for any reason" coverage through tomorrow, based on my booking date of 3/30. It works out to about 11% of my total cost, and is an 80% refund if I choose to cancel at least 2 days before leaving. It does NOT cover the volcano causing my flight to be cancelled, but it does cover ME deciding to cancel the trip, so I can do that if it seems like I won't be able to get my flight to Europe. I'm debating taking it--it would cost me about $225 for $2000 worth of coverage and I would get 80% back...so my net cost if I were to cancel would be $400 + $225 = $625.

 

Cost for cancellation on my own, however.....$300 airfare, $250 cruise (if 7 days out), and about $120 British Airways ticket. I haven't booked my hotel yet so I could gamble and only book a refundable rate. If the volcano is still really active and flights are being cancelled when I'm 8 days out, I'll bet I wouldn't be charged any airline cancellation fees, so at worst it would be the cruise $250 cancellation fee! Am I missing anything with my math & logic? By this analysis I'm better off NOT taking the insurance.

[cherylandtk]

Am I missing anything with my math & logic? By this analysis I'm better off NOT taking the insurance.

Not sure why you are looking at $2000 coverage; seems like your costs are lower than that if you only have a $250 cruise 'loss' if cancelling at 7 days. $500 (cruise) + $300 (airfare) +$120 (BA ticket) = $920. The most expensive any reason policy at tripinsurancestore at that number is $122.50

 

On NCL cancelling at 8 days prior is a 50% penalty, at 7 days prior it is 100% penalty. You said your penalty would be $250, so I am using $500 as your cruise cost. If you have other costs, then maybe you need $2000 insurance, but you have to include them in your analysis.

[erdoran]

Thank you, I was going from memory and was wrong about time limit--so I'll rephrase to say I have about a month to see whether or not things settle down. My cruise was a bit over $1240. If I booked the non-refundable hotel that would be about $250 for two nights; add in the British Airways $125 and US Air cancellation fee/taxes, etc of $300 or so and a little fudge factor since I'm guesstimating a lot of the above within 10% and you have $2k. It costs the same to insure from $1500 to $2k so that's why that number.

 

So--if I book a refundable hotel cost that's $75 extra--so my cancellation cost 30 days out is $250 cruise + $100 cancellation fee + $300 usair + $120 british air = $70 (assuming I just don't book hotel at this time and wait till closer to trip) vs $725 for buying insurance that I may or may not use. So I guess the cost of waiting till 30 days out to decide is $45.

 

Days Prior to Departure Cancellation Fee

Between 30 and 75 Days $250 pp

Between 8 and 29 Days 50%

7 Days or Less 100%

 

The fees listed here do not include our non-refundable $24.99 processing fee, collected at the time of booking, or our non-refundable $100 cancellation fee, which you agree will be charged at the time of cancellation.

[cherylandtk]

With a few adjustments to what I think are typos:

So--if I book a refundable hotel cost that's $75 extra--so my cancellation cost 30 days out is $250 cruise + $100 cancellation fee + $300 usair + $120 british air = $770 (assuming I just don't book hotel at this time and wait till closer to trip) vs $725 625 noted above for buying insurance that I may or may not use. So I guess the cost of waiting till 30 days out to decide is $145

Your insurance cost is just $225, plus the $400 you figured as the 20% not paid by the insurance company for any reason cancellation. If you want to include the +$75 for a refundable hotel in your summary as an increased cost of not buying insurance, you can, but in theory only. It will not be an actual cost to you if you cancel.

[erdoran]

yeah, you are right cheryl. thanks. Too much thinking rots the brain! End of thought process--I'll take my chances up to 31 days and see what's happening then!