Travel Insurance on cancelled trip

[roothy123]

12 hours ago, iamtrustworthy said:

Hi roothy123,

 

Will you let me know what exactly you find out from your TA or Oceania?

 

Steve Dasseos

TA says that it is a standalone policy; no purchase of insurance through Oceania is required. The credit would "cover" us for exact cost we paid, so if we paid for cruise AND the promotion which includes air and choice of amenity, the credit would include the cost of everything.  (I often purchase air and excursions on my own, but I haven't decided what's best this time.)

Edited August 26, 2020 by roothy123

[Babr]

57 minutes ago, roothy123 said:

TA says that it is a standalone policy; no purchase of insurance through Oceania is required. The credit would "cover" us for exact cost we paid, so if we paid for cruise AND the promotion which includes air and choice of amenity, the credit would include the cost of everything.  (I often purchase air and excursions on my own, but I haven't decided what's best this time.)

That is what I thought. It is an incentive provided by the cruise line in this time of uncertainty - not insurance. That is why you don’t get cash back, and that is why, in this case, it is available to all. 

 

Even in the policies sold by the cruise line, if cancel for any reason is included it is not part of the insurance. It may be administered by the same claims processing system, but it is really a voucher provided by the cruise line as a courtesy - not cash reimbursement. The cruise line already has your money, and they are keeping it. With the worry-free cancellation, they are just extending the time you have to cruise.

 

As you have acknowledged, you still need insurance. I would probably go with a comprehensive policy because it would provide actual cancellation coverage as well as medical / evacuation. Maybe even consider one of those policies that provide a pre-existing  waiver at final payment. That way you don’t have to pay for the policy until closer to sailing. By then you’ll know if you are comfortable enough to go forward with final payment. If not, take the voucher. The issue of moving the insurance to another cruise goes away.

 

Just a few things to consider. I’m sure Steve will give you the best professional advice for your situation.

Edited August 26, 2020 by Babr

[iamtrustworthy]

4 hours ago, roothy123 said:

TA says that it is a standalone policy; no purchase of insurance through Oceania is required. The credit would "cover" us for exact cost we paid, so if we paid for cruise AND the promotion which includes air and choice of amenity, the credit would include the cost of everything.  (I often purchase air and excursions on my own, but I haven't decided what's best this time.)

Hi roothy123,

 

Will you ask your TA if you are able to insure the Future Cruise Credit that is equal to 100% of the cruise fare paid?

 

In the past, you couldn't insure a FCC. I asked all my companies if there have been any changes and I'll report on the answers here.

 

Steve Dasseos

[roothy123]

Thanks, Steve.  I'll be interested in what you find out anything more from the travel insurance companies you deal with.  However, I'm afraid I don't understand  your question about insuring a FCC.  I thought I would probably need to purchase an insurance policy, as I always do, mostly to cover large medical expenses.  Luckily we've never had to cancel a cruise for any reason, and I would likely just purchase what we have done in the past, which is comprehensive insurance, but without cancel for no reason.  But in this particular case, I assume if we did have to cancel, we could get the FCC from Oceania, so that is at least an extra layer of protection. 

 

But if you could tell me more specifically what I should ask Oceania/TA, that would be helpful, as I don't really understand the question or issue!

[Babr]

1 hour ago, roothy123 said:

Thanks, Steve.  I'll be interested in what you find out anything more from the travel insurance companies you deal with.  However, I'm afraid I don't understand  your question about insuring a FCC.  I thought I would probably need to purchase an insurance policy, as I always do, mostly to cover large medical expenses.  Luckily we've never had to cancel a cruise for any reason, and I would likely just purchase what we have done in the past, which is comprehensive insurance, but without cancel for no reason.  But in this particular case, I assume if we did have to cancel, we could get the FCC from Oceania, so that is at least an extra layer of protection. 

 

But if you could tell me more specifically what I should ask Oceania/TA, that would be helpful, as I don't really understand the question or issue!

If I may ...

You do need insurance for the upcoming cruise for the reasons I outlined in an earlier post. You can get medical-only coverage if you are comfortable with the FCC and the gaps in coverage that would exist from not having a comprehensive policy. Otherwise, get a comprehensive policy as you usually do. If you have serious doubts about going, consider the pre-existing condition waiver at final payment option to minimize up-front expense / risk.

 

Steve is asking you about insuring the FCC in case decide to go that route. The point is that you can’t insure an FCC for cancellation of the subsequent cruise you book with it because the insurance companies do not recognize it as a form of payment. It has no cash value regardless of what you paid for the original cruise. You can still get medical and evacuation - just not cancellation - so if you cancel the second cruise, you lose.

 

I think he wants to know if your TA knows of a policy or if the cruise line will insure the FCC because the companies he works with do not. He has inquired just to make sure.

 

An FCC does offer some level protection, but it does have shortcomings; namely, you must use it within the required time limit, and it can’t be insured for cancellation. If you choose not to go because you are not comfortable with the state of things by then, it may be the only choice you have.

 

Steve is much more knowledgable than I am on this subject. He may have a better idea how to handle this and will put the pieces together when he posts again.

Edited August 30, 2020 by Babr

[iamtrustworthy]

On 8/26/2020 at 4:35 PM, iamtrustworthy said:

In the past, you couldn't insure a FCC. I asked all my companies if there have been any changes and I'll report on the answers here.

I have bnow heard back from all my companies. I asked this: "Are Future Cruise Credits insurable when they don't come from a Covid-19 cancellation?"

 

There are a few companies who won't insure the FCC. The other ones said:

 

"Yes, the credit / voucher can be insured as long as the insured traveler can supply documentation of the cash payment that was converted into the credit. This applies to airlines, tour operators or any travel supplier. Bonus credits are not insurable."

 

Steve Dasseos

[Babr]

2 hours ago, iamtrustworthy said:

I have bnow heard back from all my companies. I asked this: "Are Future Cruise Credits insurable when they don't come from a Covid-19 cancellation?"

 

There are a few companies who won't insure the FCC. The other ones said:

 

"Yes, the credit / voucher can be insured as long as the insured traveler can supply documentation of the cash payment that was converted into the credit. This applies to airlines, tour operators or any travel supplier. Bonus credits are not insurable."

 

Steve Dasseos

Does this mean that it is insurable if the cruise line does not cancel because of Covid? I’m not sure about the meaning of the phrase  “ insurable when they don’t come from  a Covid cancellation.”  The OP would be cancelling because of fear of Covid or would it just be like a CFAR - no reason necessary? 
 

If so, that is great news especially since it includes air and other suppliers. 

Edited September 3, 2020 by Babr

[iamtrustworthy]

22 hours ago, Babr said:

Does this mean that it is insurable if the cruise line does not cancel because of Covid? I’m not sure about the meaning of the phrase  “ insurable when they don’t come from  a Covid cancellation.”  The OP would be cancelling because of fear of Covid or would it just be like a CFAR - no reason necessary? 
 

If so, that is great news especially since it includes air and other suppliers. 

Hi Babr,

 

Yes, they are insurable no matter what creates the FCC.

 

Steve Dasseos

[Babr]

32 minutes ago, iamtrustworthy said:

Hi Babr,

 

Yes, they are insurable no matter what creates the FCC.

 

Steve Dasseos

That is a welcome change. Thanks!

[roothy123]

On 9/3/2020 at 6:25 PM, iamtrustworthy said:

Hi Babr,

 

Yes, they are insurable no matter what creates the FCC.

 

Steve Dasseos

Thank you both for your help.  It sounds like there are more options now.  I need to make a decision soon on whether to book a cruise or not, and I feel a little better with the information you've shared. 

Ruth

On 9/3/2020 at 6:58 PM, Babr said:

That is a welcome change. Thanks!