Insurance coverage - do you include credits?

[mysaddlebred000]

I always take out insurance on any type of vacation we take but my wife brought up something and I am not sure what to do. We have a credit from the cruise company which would cover half of our cruise cost. I am ready to book a cruise but not sure if I should insure it for the full cost or just the amount we will be paying. Will the insurance company pay for the credit or just the amount we paid in cash. To me, the credit is cash but I am worried that in the end, they may say no and I don't want to lose it.

We are driving to the port so the cruise is the only thing we would be insuring.

 

Thanks

[SuiteTraveler]

Ask the insurance company. You need to be upfront and truthful about the situation otherwise, if you do wind up canceling for some covered reason, they may deny your claim on the basis that you were not honest with them about what you paid for the cruise.

[Mary Ellen]

Would you get your credit back (be able to use it on a different cruise) if you canceled? If so, then you definitely couldn't also be reimbursed by the insurance company.

[mysaddlebred000]

Would you get your credit back (be able to use it on a different cruise) if you canceled? If so, then you definitely couldn't also be reimbursed by the insurance company.

 

That is another good question

[Mary Ellen]

You need to find that out before buying any insurance and it would be helpful before talking to potiential insurance companies.

 

As an example: I have an upcoming flight booked using FF miles. I could buy insurance to cover what it would cost to actually buy that same seat, a hair under $10,000. If I cancel that flight, I get my FF miles refunded. I can't also get $9,917 and some odd cents from the insurance company. I would have wasted the premium I paid for that insurance. Since DH also has used FF for the same flights, we'd be out what we paid for $20,000 worth of coverage.

[lannp]

I would speak to the insuring company. Several years ago I had to file a claim for a cancelled cruise and provide reams of paperwork including an invoice showing what I had paid to the cruise line.

[CPT Trips]

When I asked one company a similar question here's what they told me. The numbers are just to help follow . . .

Total cruise cost . . . $5000

Cruise line credit . . . $2500

Amount I paid , deposit . . . $500

Amount I paid, final payment . . . $2000

Total I paid . . . . $2500 which was the maximum that they would pay out regardless of insuring for more.

 

When I made the claim, insurance wanted a copy credit card statements with what I paid for cruise. I could only document the $500 plus the $2000.

 

They also wanted a copy of an invoice or a letter from The cruise-line showing what my actual cost was after cancellation. This showed that I paid $2500, but that $300 was taxes and port fees that would be refunded, so that when all was said and done I only paid $2200.

 

When I submitted all the paperwork to insurance, they issue a check for $2200. I also got a credit on my credit card statement for $300. My entire out-of-pocket expense was covered.

 

The cruise-line initially did not reissue my credit. Their second offer was to reinstate the credit with the initial expiration, an unacceptable offer due to recovery time and other scheduling issues. Finally, they offered to extend the expiration date of the credit for a cruise I booked contingent on the extension. That took a lot of negotiating and stubbornness on my part and, to be honest, I figure that I was losing the credit.

 

YMMV

Edited October 16, 2014 by CPT Trips

[dread_pirate]

Most insurance companies consider credits or frequent flyer miles as having no monetary value, and there are not covered.

[Traveling Library]

You can't cover the cost of the frequent flyer miles but insurance will cover the change fee. We had to cancel our FF tickets and the insurance refunded our $200 per ticket cancellation fee. Well worth it.