Travel insurance: What it covers for flight delays, cancellations, and lost baggage

What travel insurance covers for flight delays

Trip delay insurance will reimburse you for covered expenses in specific situations, such as when your airline delays or cancels your flight. For example, if you have a flight scheduled for 5 pm but it gets delayed until 8 am, travel insurance may cover your meals, hotel, and transportation. 

Your policy determines how long your flight must be delayed for coverage to begin, and insurance won’t pay for anything the airline has reimbursed you for, such as a meal if the airline provided a meal voucher.

“Travel delay coverage kicks in after a minimum delay of 3 to 12 hours, with most policies requiring at least a 6-hour delay before providing reimbursement,” said Chrissy Valdez, Senior Director of Operations and Customer Service at Squaremouth. “This benefit will cover additional expenses like meals, hotel stays, local transportation, and other reasonable expenses while you await your new scheduled departure time.”

Expenses travel insurance may cover if your flight is delayed include:

• Hotel
• Meals
• Transportation to your hotel
• Personal items needed for the delay
• Rebooking fees

How long does a flight have to be delayed for travel insurance to pay out?

Flights must be delayed 3-12 hours, depending on the policy, before travel insurance kicks in. The most common timeframe is six hours. Your travel insurance must be purchased before the delay is announced, or the policy won’t cover it.

Does travel insurance cover flight cancellations?

Yes, travel insurance covers flight cancellations in specific circumstances, such as when you must cancel due to illness, injury, or the death of a family member. It doesn’t cover cancellations you initiated because you changed your mind or your employer didn't approve your vacation time.

If the airline cancels your flight, you'll usually receive a refund or be rebooked. Trip cancellation insurance covers the nonrefundable expenses the airline doesn't reimburse when your trip is canceled for a covered reason.

Insurance for flight cancellations is different from coverage for trip interruptions, which kicks in after your trip has started.

If your flight is canceled but you’re rebooked on another flight, you can’t file a claim for the cancellation. However, you may be able to claim nonrefundable expenses related to the rebooking, such as the cost of an excursion that you missed. 

Cancel for Any Reason (CFAR) coverage can be added to your travel insurance for the most comprehensive protection. While you can cancel your trip for any reason, you will only be reimbursed 50-75% of your costs, depending on the policy terms. Additionally, you need to add coverage within 10-21 days of purchasing travel. 

What travel insurance covers for lost, delayed, or damaged baggage

Lost baggage coverage pays for the replacement of the bag and its contents, and damaged baggage coverage pays for the replacement or repair of damaged items. Coverage applies after any payment from the carrier and your homeowners insurance. 

According to the Department of Transportation, airlines' liability caps are $4,700 for domestic flights and about $1,700 for international flights. If your loss exceeds the airline's liability limits, you can file a claim with your homeowners or renters insurance. Any remaining covered expenses may then be reimbursed by your travel insurance, subject to your policy's limits and deductible. If a deductible applies, expenses below that amount won't be reimbursed.

Delayed baggage coverage reimburses essential purchases, such as clothing and toiletries, while you wait for your luggage to arrive, and doesn’t kick in until a specific period has passed, usually 12 hours. 

Each insurance policy has a coverage limit, usually up to $500 per item. Baggage coverage will typically pay to replace:

• The bag, if damaged or lost
• Clothing
• Toiletries
• Computer
• Camera

Items not typically covered by baggage insurance include:

• Already reimbursed items
• Electronics unless specified
• Undocumented losses
• Money and credit cards
• Normal wear and tear

What travel insurance does not cover for flight disruptions

Travel insurance doesn’t cover pre-existing issues, self-inflicted delays, items reimbursed elsewhere or unattended baggage. The following conditions are excluded from most standard policies for flight-related claims:

• Pre-existing events: If you knew something would disrupt your flight, like an ongoing airline strike, at the time you purchased your tickets, insurance won’t cover the disruption.
• Self-caused delays: Things that you are responsible for or could have avoided, such as oversleeping or traffic delays, aren’t covered.
• Reimbursed items: You can’t file a claim if you’ve already been reimbursed by the airline.
• Not meeting the minimum timeframe: Your policy specifies how long you must be delayed before it will pay for items like food and lodging, and won’t pay if the delay is less.
• Unattended baggage: If you lose your suitcase, travel insurance typically won’t cover it.

Read your travel insurance policy carefully to determine what is covered, how long the delay must last, and if your policy is secondary to airline liability or homeowners insurance.

Travel insurance vs. what the airline owes you

Airline liability covers rebooking or refunding your ticket and possibly meals, a hotel, and incidentals, and travel insurance covers nonrefundable expenses not paid for by the airline. 

Remember, travel insurance is secondary to airline liability, so if the airline pays for your meal, you can’t include it on an insurance claim.

How to file a travel insurance claim for a flight disruption or lost baggage

You must file a travel insurance claim within 60-90 days, provide written documentation of the disruption or lost luggage, and keep receipts for any expenses.

Steps to file a travel insurance claim are:

1. Obtain written documentation of the flight disruption or lost baggage.
2. File a report with the airline to initiate their liability coverage.
3. Contact your insurer to begin the claims process, typically required within 60-90 days.
4. Submit documentation and receipts for expenses, such as hotels, meals, new luggage, and replacement of lost items that were not covered by the airline.
5. Respond quickly to any requests from the insurer for more information or documentation.
6. Confirm the claim was filed and get a reference number.

“Just like other types of insurance, travel insurance providers may require that claims be documented with receipts and other proof of payment,” said Daniel Durazo, Director of External Communications, Allianz Partners USA.  “Consumers should keep their itineraries and other trip information, as well as receipts they may need to file their claim.”

When should you buy travel insurance for a trip?

The best time to buy travel insurance is when you make your first nonrefundable payment for your trip. 

You should buy travel insurance:

• When you book your trip or within 14-21 days for CFAR coverage
• Before a named event. Insurance won’t cover delays or cancellations after an event has become common knowledge, such as a hurricane or airline strike
• Before your trip begins. Once your trip starts, coverage can be very limited and won’t cover anything prior to purchase.

Compare plans, timeframes, and coverage before booking to get the right coverage for you.

How to choose a travel insurance plan for flight and baggage protection

When choosing travel insurance, compare the delay period or threshold, daily expense amount, baggage delay threshold, lost luggage limit, and whether the coverage is primary or secondary.

• Delay threshold: Look for a 3-6 hour delay threshold; some plans have a waiting period of up to 12 hours
• Daily expense amount: Look for a $150 – $200-a-day cap for the most coverage.
• Baggage delay threshold: Look for a shorter period before baggage delay coverage applies; some are as long as 12 hours.
• Baggage loss limit: Look for a plan that reimburses you at least $1,500 per person for lost luggage.
• Primary or secondary coverage: Look for primary coverage if possible, so you don’t have to wait on the airline or your homeowners or renters insurance to pay.

“Read your policy beforehand and know what your trigger events are for coverage and what documentation is required if you're forced to file a claim. For travel delays, aim for policies that trigger between 3-6 hours. For baggage, look for a trigger at 6-12 hours,” said Valdez.