Navigating Travel Insurance Amidst the Wildfires of Southern California

The wildfires in California are having an extremely devastating effect on the Los Angeles community.

The tourism sector stands as one of the primary financial engines in the region. Individuals planning journeys westward might contemplate travel insurance to safeguard against the repercussions of the fires or other natural calamities.

Numerous travelers overlook travel insurance until they are traveling abroad or embarking on a costly cruise. However, circumstances of this nature render insurance a more appealing choice, irrespective of the travel destination.

Hence, here’s what you should be aware of.

“When we analyze the current situation here, we reflect on what occurred in western North Carolina. Observing the hurricane trends over recent years indicates that there’s an alarming amount happening,” remarked Jeff Rolander, VP of Claims for Faye Travel Insurance.

This situation complicates travel and makes trip planning riskier, so you might want to consider travel insurance to manage the unforeseen.

You can opt for a basic policy that covers particular items in specific scenarios or a “cancel for any reason policy,” referred to as a CFAR. Such policies have gained popularity in the past few years, especially following the COVID-19 crisis.

“There isn’t a specified list of reasons. You have the choice to cancel for any reason. You don’t even need to provide a rationale. You could simply cancel your trip and receive reimbursement,” stated Rolander.

A CFAR is commonly available as an additional benefit or upgrade to a standard travel policy, yet it comes at a high cost — roughly 50 percent extra.

As reported by Nerd Wallet, travel insurance generally costs around 7 percent of the total trip expense; expect to shell out $350 to cover a $5,000 vacation. Including the CFAR will add another $175.

Without a CFAR, policies typically issue refunds for cancellations due to illness, job loss, or if a natural disaster disrupts your plans.

“For travelers who have already arranged a trip to LA or are departing from LA, there are certain protections that travel insurance could potentially offer,” he mentioned. “For instance, if someone’s home or destination becomes unlivable due to a natural disaster.”

Or if an airport faces closure.

Many policies also encompass mandatory evacuations.

However, prior to making a purchase, ensure you read the terms and conditions thoroughly to comprehend what is covered, and verify that you are buying from a trusted provider that offers 24/7 support.

“Check their ratings. You are purchasing a commitment. Therefore, it is crucial to keep that in mind. You want to collaborate with a company that will uphold that commitment,” added Rolander.

Naturally, travel insurance must be acquired prior to the trip; for example, if you have a journey planned to Los Angeles next week but haven’t secured insurance yet, you won’t be able to obtain coverage at this point, but it’s certainly worth considering for your upcoming vacation.