Question on Trip Insurance with booking on Viking's Risk-Free policy

[CCWineLover]

We just booked a new Viking cruise with the Risk-Free policy (not a rebooked cruise from one that was previously cancelled).  It is a cruise on our bucket list and we saw a great Feb sale deal with free airfare.  Given that people are getting their vaccines and immediately calling their travel agent, and things are definitely getting booked, we decided we better book it.

 

So - for insurance, what really constitutes the total non-refundable amount to be insured? 

If we were to decide to cancel, we'd be able to, depending on time frame, get money or a voucher or combination.

If Viking cancels we can get a voucher for future.

How does all this affect what we should insure?

 

Has anyone had any experiences with this?

[TayanaLorna]

23 minutes ago, CCWineLover said:

We just booked a new Viking cruise with the Risk-Free policy (not a rebooked cruise from one that was previously cancelled).  It is a cruise on our bucket list and we saw a great Feb sale deal with free airfare.  Given that people are getting their vaccines and immediately calling their travel agent, and things are definitely getting booked, we decided we better book it.

 

So - for insurance, what really constitutes the total non-refundable amount to be insured? 

If we were to decide to cancel, we'd be able to, depending on time frame, get money or a voucher or combination.

If Viking cancels we can get a voucher for future.

How does all this affect what we should insure?

 

Has anyone had any experiences with this?

I began responding and then I "got" what you were asking.  With the "risk free", i think the only potential full cost of cruise fare would be jeopordized within the final 24 hour window.  According to Viking cancellation policy it would be 100%.  What could happen in the final 24 hours?  Lots of things.  If your travel dates include a self arranged pre cruise stay, that gives you a window to make up any missed connection/flight cancellation delays.

 

Its an interesting question and one with which i am grappling.  I want to insure for medical but what else...?

[CCWineLover]

51 minutes ago, TayanaLorna said:

I began responding and then I "got" what you were asking.  With the "risk free", i think the only potential full cost of cruise fare would be jeopordized within the final 24 hour window.  According to Viking cancellation policy it would be 100%.  What could happen in the final 24 hours?  Lots of things.  If your travel dates include a self arranged pre cruise stay, that gives you a window to make up any missed connection/flight cancellation delays.

 

Its an interesting question and one with which i am grappling.  I want to insure for medical but what else...?

Thanks, TayanaLorna.

I'm glad I'm not the only one grappling!   Our previous cruises had already been insured fully and then when cancelled got applied to new cruises.  This brand new booking brought the question home to me. 

I am inclined to agree with you that exposure is just the final 24 hours - and we almost always fly in multiple days ahead of time either with Viking Air or not.   I did a cursory look at insurance for the new cruise and prices as a percent of total spent have gone up significantly since COVID - even though they don't cover COVID.  So looking for a way to just perhaps do Medical and Evacuation...  Don't know.  Maybe others have some thoughts!

[Heidi13]

With the first cruise we booked, the entire fare would have been covered by FCV, so we had no cash outlay other than the deposit. I determined our potential risk was the final 24 hrs, otherwise we would get the FCV re-instated.

 

Had we taken out the Viking Insurance, even if we had to cancel for 1 of the stated reasons, we would not have received a cash refund. Therefore, I saw no benefit of taking the insurance.

 

When we moved the booking to the 23 WC, the FCV's will only cover about 30% of the fare, so at full payment, we have a significant payment to make. Even although the RFG will provide FCV's up to 24 hrs before departure, we decided that risk and the other risks covered by the insurance were worth the cost. Especially medical evacuation.

 

Since we used our FCV's at time of booking, the insurance costs were only based on the outstanding balance. Therefore, our insurance for 23 WC was substantially less than the 20 WC.

[rbslos18]

I think Trip Cancellation insurance is very prudent. Even with the excellent Viking cancellation policy, we still want coverage of financial default. Given we are in uncharted COViD waters, nothing is impossible. Viking Moody’s rating has been downgraded to B3. The bonds are speculative and the company’s outlook is negative. We recently booked two cruises and made sure we are protected should the unexpected happen.

[Porcupine 52]

I did not know that Viking Moody rating have been downgraded to a B3.  My recollection from the banking days that is highly speculative. Most institution could not buy them.  Are you sure on that?

[rbslos18]

Moody's Investors Service ("Moody's") assigned Viking Cruises Ltd's ("Viking") planned $350 million senior unsecured notes a Caa2 rating and Viking Ocean Cruises Ship VII Ltd. planned $350 million secured note issuance a B2 rating. There is no change to Viking's existing ratings including its B3 corporate family rating, B3-PD probability of default rating, existing B2 senior secured rating and existing Caa2 senior unsecured rating. The outlook remains negative.

Edited March 1, 2021 by rbslos18

[Porcupine 52]

not good

[Porcupine 52]

If I remember Caa2 rating is high credit risk...No bank would be allowed to   buy the notes.   Fed would come down on you HARD...