Multiple hurricanes are now more likely to occur.Is travel insurance coverage affordable for that? – Forbes Advisor

Beach vacationers along the East Coast and the Gulf Coast are at increased risk of a hurricane’s one-two punch, according to Princeton University researchers.

That can derail even the most carefully planned vacation plans.

“This year has already been a busy year for travel. [wild]Fires and travel chaos,” said Megan Moncrief, president of travel insurance comparison site SquareMass.

“The number of hurricanes is increasing year by year,” added Moncrief. If travelers are concerned, it is recommended that they purchase travel insurance as soon as possible. This is because the policy will only take effect for a particular storm if the policy is purchased before the storm is named.

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New Concerns About Hurricane Season

The Atlantic hurricane season, June through November, coincides with the peak travel season for many coastal areas.

Princeton study published in journal nature climate changefound that climate change and sea-level rise have increased the probability of consecutive hurricanes (hurricanes that hit within about 15 days) along the East Coast and Gulf Coast.

Researchers at Princeton University say that storms that strike an area before it has recovered from previous hurricanes tend to do more damage than if they occurred on their own.

Will travel insurance prices increase as hurricane frequency increases?

The prospect of more storms, at least not yet, has affected the price consumers pay for travel insurance.

“We haven’t seen a lot of rate hikes related to storms or other hazards,” Moncrief said. That could change if the number and cost of claims increases. Still, she estimates any rate hikes are at least a year away, as they must first be approved by state insurance regulators.

Even at current prices, travel insurance can make your trip more expensive. A Forbes Advisor analysis found that travel insurance costs, on average, 5% to 6% of the total travel cost. A cancel for any reason policy can add nearly 50% to your costs.

How to choose the right type of policy

Travel insurance usually provides coverage if a hurricane makes it impossible to travel to a destination or stay in a hotel, for example if you have to stay indoors due to stormy weather, will not be compensated for. Canceled.

“If you’re afraid that rain or bad weather will ruin your vacation, our ‘Cancel for any reason’ or ‘Suspend for any reason’ compensation option gives you more flexibility to cancel or shorten your trip. You can do it,” said Terry Boynton. , the president of Yonder Travel Insurance said in a news release.

‘Cancel for any reason’ travel insurance (CFAR) allows you to cancel for any reason and will generally refund 75% of your non-refundable travel costs. Please note that cancellations generally must be made at least 48 hours prior to departure for CFAR benefits to apply.

“Interruption for any reason” travel insurance (IFAR) allows you to shorten your trip for any reason and reimburse up to 75% of the cost of your insured trip. In general, at least 48 hours must have elapsed since travel commenced for IFAR coverage to take effect. IFAR coverage typically adds 3% to 10% to the cost of travel insurance.

Rachel Hu, dean of tourism, hospitality and event management at the University of Florida, said upgrading CFAR makes sense if you’re heading to a destination that’s frequently hit by hurricanes.

Tickets are booked well in advance of travel, making it impossible to know exactly “when a hurricane will hit the area,” Hu said. She points out that even when storms do not interfere with travel, they can damage the enjoyment of travel by damaging infrastructure, canceling events, and understaffing venues.

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Travel insurance must be purchased before a storm occurs and there may be additional time requirements and conditions before coverage becomes effective. Please read the policy carefully before using to understand what coverage and services are available.