Insuring FCC

[HogTide]

Last June we were on the lame and slow Crown for one of the 7 day Alaskan trips. A couple of weeks after returning home, and after a ton of negative publicity, Princess offered a limited time Future Cruise Credit equivalent to 50% of the cruise fare paid.  Now that we have reservations for a cruise in June, my TA and a representative of an insurance company tell me that the FCC value must be considered in the cost of our policy.  I have always thought insurance was to protect you from risk of loss of value. The only loss that I face in this situation is my share of the fare after FCC is applied by Princess.  This FCC is not the result of a cancellation, but is "a gesture of concern for your experience and gratitude for your understanding" according to the Princess letter.

Has anyone else run into this situation and understands it better than me.

[voljeep]

8 minutes ago, HogTide said:

Last June we were on the lame and slow Crown for one of the 7 day Alaskan trips. A couple of weeks after returning home, and after a ton of negative publicity, Princess offered a limited time Future Cruise Credit equivalent to 50% of the cruise fare paid.  Now that we have reservations for a cruise in June, my TA and a representative of an insurance company tell me that the FCC value must be considered in the cost of our policy.  I have always thought insurance was to protect you from risk of loss of value. The only loss that I face in this situation is my share of the fare after FCC is applied by Princess.  This FCC is not the result of a cancellation, but is "a gesture of concern for your experience and gratitude for your understanding" according to the Princess letter.

Has anyone else run into this situation and understands it better than me.

if you booked a $1000 cruise paying $500 and FCC of $500 and had to cancel, how much would you expect back?

[Babr]

https://www.princess.com/plan/fcc-onboard-cruise-credits/

 

Here is a link to the Terms and Conditions governing FCC. You will see that bonus FCC such as you have does not represent cash value, therefore can’t be insured by third-party policies. Be sure your agent understands your FCC is goodwill not a refund from a cancelled cruise.

[PacnGoNow]

8 minutes ago, Babr said:

https://www.princess.com/plan/fcc-onboard-cruise-credits/

 

Here is a link to the Terms and Conditions governing FCC. You will see that bonus FCC such as you have does not represent cash value, therefore can’t be insured by third-party policies. Be sure your agent understands your FCC is goodwill not a refund from a cancelled cruise.

Is that also the case for FCC’s given for covid isolation?  Should not have to pay insurance on them?  
CFAR PVP you would not get them back in your account to use up until expiration date?

 

 

[milolii]

We have a similar case.  Enchanted last September.  We had a large credit and when booking a new cruise, my agent told me I do not insure the credit. It is a “Good Will  Gesture”.  
 

Also, I can only insure the amount I paid for the AARP Princess gift cards.  So only $900.00 for $1000.00, for example.  It did cut the cost of my insurance. 
 

I thought this was the case but asked anyway. Maybe look for a different insurance company for a second opinion?

Edited January 22, 2023 by milolii

[HogTide]

$500.00

[Babr]

1 hour ago, PacnGoNow said:

Is that also the case for FCC’s given for covid isolation?  Should not have to pay insurance on them?  
CFAR PVP you would not get them back in your account to use up until expiration date?

 

 

Is it considered as goodwill or was it a refund for the days you were isolated? Only those FCC which result from loss you paid for can be insured by third-party policies.

 

It is my understanding that Princess requires you to insure the total amount including FCC. According to T&C posted above, refundable FCC are returned.

[PacnGoNow]

3 minutes ago, Babr said:

Is it considered as goodwill or was it a refund for the days you were isolated? Only those FCC which result from loss you paid for can be insured by third-party policies.

 

It is my understanding that Princess requires you to insure the total amount including FCC. According to T&C posted above, refundable FCC are returned.

A refund of days in isolation in FCC’s.

PVP ins. 

 

[Babr]

1 hour ago, milolii said:

We have a similar case.  Enchanted last September.  We had a large credit and when booking a new cruise, my agent told me I do not insure the credit. It is a “Good Will  Gesture”.  
 

Also, I can only insure the amount I paid for the AARP Princess gift cards.  So only $900.00 for $1000.00, for example.  It did cut the cost of my insurance. 
 

I thought this was the case but asked anyway. Maybe look for a different insurance company for a second opinion?

I don’t think checking with another company will make a difference. Third-party insurance will insure only the actual dollar value. That is why you could insure only $900 of your discounted cards. If there is no cash value as is the case for goodwill or bonus FCC, then it can’t be insured.

 

Princess insurance is different because it is a hybrid product consisting of true insurance from Nationwide for some named risks and a CFAR element from Princess.

[milolii]

25 minutes ago, Babr said:

I don’t think checking with another company will make a difference. Third-party insurance will insure only the actual dollar value. That is why you could insure only $900 of your discounted cards. If there is no cash value as is the case for goodwill or bonus FCC, then it can’t be insured.

 

 

The  OP has stated their insurance company wants to include the good will gesture amount in figuring the policy costs as noted in post #1.  Hence the recommendation to check with another company.  

[Babr]

29 minutes ago, milolii said:

The  OP has stated their insurance company wants to include the good will gesture amount in figuring the policy costs as noted in post #1.  Hence the recommendation to check with another company.  

Sorry. I misunderstood your meaning. Yes to the OP checking with another company. Many here of CC depend on Trip Insurance Store to offer good advice and options.

Edited January 22, 2023 by Babr

[milolii]

@Babr no worries, we use Tripinsurancestore.  I agree, good advice and options.