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Don't Rely on Travel Insurance to Cover COVID-19 Cancellations
Since the emergence of COVID-19, most vacation travel has come to a halt, with countless cancellations of flights, cruises, lodging, and other travel related arrangements. Most would-be travelers during this time have found that the travel insurance they may have purchased in advance does not cover cancellations due to a pandemic.
With most commonly purchased travel insurance policies, this means that if you plan a trip and then cancel because you are simply concerned about the possibility of getting sick, you will not receive compensation through your travel policy.
If you are prevented from traveling due to being sick with an illness other than a pandemic-related illness, the most common policies will likely provide coverage; similarly, if you get sick during your travels with an illness other than a pandemic-related illness, you may be covered.
In the case of the current COVID-19 pandemic, airlines have voluntarily made arrangements for ticket holders to change their plans without a fee; and hotels, inns and rental lodgings usually have cancellation timelines during which all or a portion of funds will be returned. For those planning future trips, careful review of these contractual timelines should help.
Consumers with questions about insurance matters can obtain information and assistance from the Maine Bureau of Insurance by visiting maine.gov/insurance, calling 800-300-5000 (TTY 711), or e-mailing Insurance.PFR@maine.gov.
Travel insurance usually costs between 4-10% of a trip's price, depending on the coverage. Here are some brief descriptions of various types of travel insurance policies and what they cover:
TRIP CANCELATION INSURANCE: Reimburses pre-paid travel expenses if you are prevented from taking your trip for a reason covered by your policy. It is typically included in every comprehensive policy. You will usually receive reimbursement if your trip is cancelled for: unexpected illness or injury of you, or a traveling companion, that deems you unfit to travel; hospitalization or death of a non-traveling family member; weather or common carrier issues; unforeseen natural disaster at home or the destination; a legal obligation such as being called for jury duty or serving as a witness in court.
Tip: Exclusions might include canceling your trip due to being detained by customs or having to cancel due to a work obligation. If your flight is delayed, you may or may not be covered. Some policies only cover a trip cancellation claim if you lose more than 50% of your scheduled trip length due to a covered delay. You also must make a good faith effort to continue your travels using alternative means.
TRAVEL MEDICAL AND MAJOR MEDICAL: Provides protection if you become ill or injured while traveling. Travel medical insurance provides short-term medical coverage.
Tip: Find out if your policy requires you to obtain prior approval before seeking medical care. Also check if any pre-existing medical conditions will exclude you from coverage.
EMERGENCY MEDICAL EVACUATION. Provides coverage for services such as air evacuation and medical transportation to the nearest adequate medical facility then home if warranted. This type of coverage is useful if you're traveling to a rural area without easy access to medical facilities. In the event a person passes away during travel, policies may also cover the costs of repatriation of remains.
Tip: Coverage may not cover you if you're participating in an activity your insurer considers dangerous such as sky diving. There are specialty insurance products for some activities, such as SCUBA diving.
ACCIDENTAL DEATH AND DISMEMBERMENT: Provides coverage to beneficiaries if you die in an accident on the trip or pays a sum to you if you lose a hand, foot, limb or eyesight from an accident. Some plans only apply to an accident that occurs on an aircraft.
BAGGAGE LOSS: Reimburses for loss of baggage or personal items.
CANCEL FOR ANY REASON (CFAR) POLICIES: These policies are more expensive and typically only reimburse you a percentage of your travel costs. The reason for cancellation is not relevant. There is usually a time frame for when cancellations are allowed, and you must insure all of your pre-paid and non-refundable expenses. CFAR policies are usually added as an extra option in addition to trip cancellation coverage.
Phone Line for Pandemic Unemployment Applications
The Pandemic Unemployment Assistance (PUA) program is launching on May 1. PUA is a new federal program that covers the self-employed and many others not typically eligible for traditional unemployment, including: farmers, fishermen, independent contractors, gig economy workers, non-profit employees not previously covered, workers without enough work history or earnings to be eligible for traditional unemployment and certain others who have been determined ineligible for traditional unemployment benefits. It expires December 31, 2020.
For questions about PUA, please call 1-888-413-0820. This phone line will be open from 8-3 Friday and 8-noon Saturday. Applications for PUA will open on Friday, May 1. Beginning Friday, people who have been self-employed should do the following:
- Create a ReEmployME account
- Verify your email address in ReEmployME – click on the Benefit Maintenance menu and follow the instructions to receive a confirming email
- Sign up for direct deposit – also through the Benefit Maintenance menu. This is faster than the debit card option
- File your PUA claim – through the Unemployment Claim menu
- File your weekly certification for any weeks after your loss of employment
- Continue filing your weekly certification every week
- Filing for Pandemic Unemployment Assistance? Starting Friday May 1, 2020, at 8 a.m. we will be accepting applications for this new federal program. For more information, please view or download the informational document. (PDF)
- Pandemic Unemployment Assistance (PUA) Presentation (PDF)
State Parks and Maine Public Lands remain open for day-use.
Currently open State Parks and Maine Public Lands remain open for day-use. State Park campgrounds are closed and have a target opening date of June 1, with June camping restricted to Maine residents and out of state visitors who have completed a 14 day quarantine.
Parks and Public Lands updates
- Currently open Maine State Parks and Public Lands remain open for day-use with curtailed services. Guests must strictly abide by physical distancing guidelines and not gather in groups.
- The target date for opening State Park campgrounds is June 1, with June camping restricted to Maine residents only and out of state visitors who have completed a 14 day quarantine.
- Those with camping reservations affected by these policies may (1) contact the Reservations Center to re-book to a later date, or (2) receive a full refund. Refunds for the reservation fee may be made online. If you cancel your reservation online, refunds of the $5/night processing fee must be requested by phone at 800-332-1501 (in-state) or (207) 624-9950 (outside Maine).
- All Maine Public Land beaches, trails, and roads remain open for day-use only, and we advise extreme caution.
- Ten Midcoast and Southern Maine coastal State Parks remain closed, with a target reopening of June 1. Closures include Reid State Park, Popham Beach State Park, Fort Popham, Fort Baldwin, Kettle Cove State Park, Two Lights State Park, Crescent Beach State Park, Scarborough Beach State Park, Ferry Beach State Park, and Mackworth Island.
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