Insuring amounts quoted in Euros at correct $ amount

[austinhoops]

Such a helpful group of people here...I hope I can both you with another travel insurance question. This has to do with estimating costs in $$ that are quoted in Euros.

 

I have read (and been told by my insurer, Travel Guard) that in order for a pre-existing policy to be legitimate, every non-refundable part of the trip must included in the policy. I understand, that's fine. However, you also must be EXACT, to the penny, or they can deny the claim. I referenced this story in another thread about a young woman who was off by $2.50 in estimating her airfare portion and therefore had her claim denied:

 

http://articles.chicagotribune.com/2012-05-22/travel/sns-201205220000--tms--traveltrctntt-b20120522-20120522_1_travel-insurance-travel-guard-insurance-purchase

 

So here is my dilemma...

I have 2 hotel confirmations in Europe, booked online through a well-known online agency. Both prices are quoted in Euros, with an estimate for the amount in dollars. The confirmed price is the Euro price, so the dollar amount might vary depending on the exchange rate. I asked the rep at Travel Guard what amount I should insure at ---today's exchange rate?-- to be sure I don't have a problem with the claim if the amount if off due to exchange rate variances. He wasn't sure, so he checked with another rep and told me just to insure it at today's conversion rate. So that's what I did.

 

My concern is, if the actual amount ends up being a little different due to exchange rate variance (which it likely will be- the trip is 8 months away)- might they deny me in the event I have to make a claim? After reading the above article and a few comments on this board, I'm concerned.

 

Would appreciate if you have faced this currency issue before and the best way to manage it. I hope the rep was right, but I'd hate to be burned later when I've been very diligent about insuring for each piece of this trip.

[cruiseco]

Your figures don't have to be "exact", they just have to be enough. Underestimate by $5 and there might be a problem. Overestimate by $5 and you're OK.

 

The easy part is that all Travel Guard plans I'm aware of have set up their premium/trip cost tables in $500 or $1000 increments. For example, if your trip cost is $1,001 to $1,500 your premium might be $75. If your trip cost is $1,501 to $2,000 you might pay $90.

 

In this case maybe your best estimate of the euro - $$ trip cost is $1350. Just round up to $1,500 -- it won't cost you any more and tiny fluctuations in the exchange rate won't matter.

 

If a claim is made they'll ask for some sort of proof payment. If you're paying by credit card your proof will be whatever shows up on your credit card statement in dollars and the card issuer might use a different formula that you might elsewhere do it's kind of hard to estimate 100% accurately beforehand.

[austinhoops]

Thanks, Cruise Co. So if I understand correctly, as long as I'm insured for at least the amount that it costs, I'll be ok. Better to overestimate than underestimate. If under, they can deny. If over, they won't care?

 

In that case, I guess I should call them back and tell them that the hotel might cost a little more and I'd like to insure for more.

[austinhoops]

And just one other, but slightly related question. If I pre-purchase tickets for a museum in advance, I assume I must add that to my insured total? Basically ANYTHING, however small, that is purchased in advance and non-refundable, must be included to maintain pre-existing coverage?

[GeezerCouple]

And just one other, but slightly related question. If I pre-purchase tickets for a museum in advance, I assume I must add that to my insured total? Basically ANYTHING, however small, that is purchased in advance and non-refundable, must be included to maintain pre-existing coverage?

 

Yes, you are correct IF you have the type of coverage that requires that ALL "non-refundable vacation costs" be included.

 

I've forgotten if you are certain you have a policy that allows you to add additional costs incrementally (all within deadlines to preserve that pre-existing coverage amount, probably), or if you need to estimate it all up front. (That could be very difficult indeed, with excursions, pre- or post-cruise stays, etc., and airfare fluctuations.)

 

But as mentioned above, because most coverage amounts go in increments of, say, $500, just add a $50 (or 50 Euro ;-) extra cost amount as needed.

And because of the currency conversion concerns (a VERY wise thing to think about at this point, in our minds), just keep it at least as much as it would need to be if the conversion changed some "x%", whatever you think is the worst case scenario. It isn't expensive to add an extra $500 coverage to be safe here, rather than risk a shortfall and a denial of coverage. (My goodness, a $2.50 shortfall, and the policy was void? Not good at all, a real shame!)

Also, there might be actual language that covers this situation of currency fluctuation.

(This is a case where a broker could be a real help, to point you to where the policy does or doesn't address special situations, and/or to help you get a policy that does, etc.)

You might want to try speaking with them anyway. They may be willing to help you understand the policy you already have (if you like them, after all, you might purchase from them in the future; it doesn't cost extra).

 

Or can you have some or all of the insurance *issued* in the currency to be used where you will be traveling?

 

You've raised a bunch of interesting questions ;-)

We hadn't yet thought about the currency conversion situation, as we are just starting to plan some of our foreign trips.

 

GeezerCouple

[austinhoops]

Thanks GeezerCouple...really helpful points you've made.

 

Yes, my policy allows me to add as I purchase--I just have to remember to do so within 14 days each time to preserve the pre-existing clause. And while reading the policy carefully is a must, I have picked up some very helpful tips here, especially because the policy language is not always that easy to understand completely. Or I might not foresee a situation that someone here has experienced. Or this particular issue (currency conversion) is not articulated clearly in the policy. The insurance company agents have been pretty helpful as well.

 

I'm calling back this afternoon to increase the insured amount of the Euro priced items, to be sure I cover any fluctuations in currency.

 

Thanks, all.