How to Read a Travel Insurance Policy - A Line-by-Line Guide

Why reading your policy matters

Most travelers never read their travel insurance policy until they need to file a claim—and that's when they discover critical exclusions, documentation requirements, or time limits that can invalidate their coverage.

The average travel insurance policy is 15-25 pages of dense legal language. This guide breaks down the key sections so you know exactly what you're buying.

Real example: A couple missed their $8,000 cruise refund because they filed their cancellation claim 91 days after the incident. Their policy required claims within 90 days—buried on page 18.

The 8 essential sections of every travel insurance policy

1. Declarations page (your coverage summary)

This is the first page and shows:

• Your name and trip details (dates, destinations)
• Coverage limits (how much the policy pays for each benefit)
• Premium paid (what you're paying)
• Policy number (critical for claims)
• Effective dates (when coverage starts and ends)

What to check:

• ✓ Trip dates match your actual travel dates
• ✓ All travelers are listed correctly
• ✓ Destination countries are accurate
• ✓ Coverage limits meet your needs (especially medical evacuation)

2. Definitions section

This section defines critical terms. Don't skip it! Insurance companies use specific definitions that may differ from common understanding.

Key terms to understand:

Term	What it usually means	Red flags
Pre-existing condition	Medical condition you had before buying the policy (lookback period: 60-180 days)	Check the lookback period—longer = more exclusions
Immediate family	Spouse, children, parents, siblings (some include in-laws, some don't)	May not include stepfamily, domestic partners, or extended family
Medically necessary	Treatment required to stabilize your condition (not comfort or convenience)	Insurer's doctor decides, not your doctor
Reasonable and customary	What the insurer deems appropriate cost for care in that location	They may not pay the full hospital bill if deemed excessive
Common carrier	Airline, train, bus, cruise ship (NOT rental cars or taxis)	Some benefits only apply to common carrier travel

3. Coverage benefits (what's included)

This is the meat of the policy. Each coverage type has its own subsection:

A. Trip cancellation

• What's covered: Specific reasons listed (illness, death, severe weather, jury duty)
• What to check: Is the list "named perils" (only listed reasons) or "cancel for any reason" (CFAR)?
• Common exclusions: Change of mind, work conflicts, fear of travel, financial circumstances

B. Trip interruption

• What's covered: Unused trip portion + extra costs to return home
• What to check: Does it cover 100%, 125%, or 150% of trip cost? (Higher % = more coverage)

C. Emergency medical

• What's covered: Doctor visits, hospital stays, prescriptions, emergency dental
• What to check: Minimum $100,000 for international travel
• Common exclusions: Routine care, pre-existing conditions, injuries from high-risk activities

D. Medical evacuation

• What's covered: Air ambulance to nearest adequate facility or back to the U.S.
• What to check: Minimum $250,000 (higher for Asia-Pacific)
• Watch out: "Medically necessary" requirement—insurer decides, not you

E. Baggage loss/delay

• What's covered: Lost, stolen, or delayed luggage and contents
• What to check: Per-item limits (usually $250-500 per item)
• Common exclusions: Electronics, jewelry, cash, business items

4. Exclusions (what's NOT covered)

This is the most important section. Exclusions void your coverage entirely.

Common exclusions in every policy:

• Pre-existing medical conditions (unless waived)
• Injuries from illegal activities
• War, terrorism, civil unrest (some policies cover, most don't)
• Self-inflicted injuries, suicide attempts
• Mental health conditions (unless specifically covered)
• Alcohol or drug-related injuries
• Travel against medical advice
• Travel to State Department Level 3 or 4 destinations

Activity-based exclusions (require special riders):

• Skiing, snowboarding (often covered with rider)
• Scuba diving below certain depths
• Mountain climbing with ropes
• Extreme sports (bungee, skydiving, paragliding)
• Professional or competitive sports

Pro tip: If you plan adventure activities, check if your policy includes them or requires a rider. Don't assume they're covered.

5. Conditions and requirements

This section outlines what YOU must do to maintain coverage:

Common requirements:

• Purchase within X days of first trip payment (for pre-existing condition waiver)
• File claims within 20-90 days of incident
• Notify insurer within 24-72 hours of medical emergencies
• Provide original receipts and documentation
• Get medical records translated to English
• Obtain police reports for theft or lost items

⚠️ Failure to meet these conditions can void your entire claim.

6. Claims process

What the policy should tell you:

• How to contact the claims department (phone, email, portal)
• What documentation is required
• Time limits for filing
• How long claim processing takes
• How payment is made (direct, reimbursement)

Red flags:

• Vague or complicated claims process
• Very short filing windows (less than 30 days)
• Requirement to use only their medical network (limits your options)

7. Coordination of benefits

If you have multiple insurance policies, this section explains which pays first:

• Primary coverage: Pays first
• Secondary coverage: Pays only after primary exhausted (most credit cards)

What to check: Is this policy primary or secondary for medical coverage?

8. General provisions

Legal fine print including:

• Subrogation: Insurer's right to recover money from third parties
• Misrepresentation: Consequences of lying on application (claim denial)
• Cancellation: How you or the insurer can cancel the policy
• Legal jurisdiction: Where disputes must be settled

Key red flags to watch for

🚩 Very low medical evacuation limits (under $100,000) 🚩 Short claim filing windows (under 20 days) 🚩 Narrow definition of "immediate family" (excludes in-laws, stepfamily) 🚩 Long pre-existing condition lookback period (180+ days) 🚩 "Reasonable and customary" language (insurer can reduce payouts) 🚩 Requirement to use specific medical networks (limits hospital choice in emergencies) 🚩 No coverage for your planned activities (skiing, scuba, etc.) 🚩 State Department destination exclusions (check if your destination is Level 3/4)

Questions to ask before buying

Before purchasing any travel insurance policy, make sure you can answer:

1. What medical evacuation limit do I have? (Minimum: $250,000)
2. Does this cover my pre-existing conditions? (Check waiver requirements)
3. Are my planned activities covered? (Skiing, diving, hiking, etc.)
4. What's the claim filing deadline? (At least 30 days, preferably 60-90)
5. Is this primary or secondary coverage? (Primary is better)
6. Does it cover Cancel For Any Reason? (Must be added separately, usually within 14 days)
7. What documentation do I need to keep? (Receipts, medical records, police reports)
8. Who do I call in an emergency? (24/7 assistance line)

How to compare policies side-by-side

When comparing multiple policies, create a simple spreadsheet:

Benefit	Policy A	Policy B	Policy C
Emergency medical limit	$100,000	$50,000	$250,000
Medical evacuation limit	$250,000	$100,000	$500,000
Trip cancellation coverage	100% trip cost	100% trip cost	100% trip cost
CFAR available?	Yes (+40%)	No	Yes (+50%)
Pre-existing waiver?	Yes (14 days)	No	Yes (21 days)
Adventure sports covered?	Skiing only	None	200+ activities
Claim filing deadline	90 days	20 days	60 days
Premium cost	$245	$180	$320

Winner for this example: Policy C offers the highest medical/evacuation limits, adventure sports coverage, and reasonable claim timeline—worth the extra $75.

Common policy jargon decoded

Act of God: Natural disasters beyond human control (hurricanes, earthquakes) Aggregate limit: Total maximum the policy pays across all claims Deductible: Amount you pay before insurance kicks in Per occurrence limit: Maximum paid per incident (separate from aggregate) Rider: Additional coverage you can add to base policy Schedule: List of coverage limits and benefits (declarations page) Territory: Geographic area where coverage applies Waiting period: Time after purchase before coverage begins

Your policy checklist

Before your trip, verify:

• [ ] Policy number saved in phone and email
• [ ] Emergency assistance number saved as contact
• [ ] Digital copy of full policy in cloud storage
• [ ] Physical copy in carry-on luggage
• [ ] Travel companions have copy of your policy
• [ ] You understand coverage limits and exclusions
• [ ] You know claim filing deadlines and requirements
• [ ] You have insurer's claim submission email/portal

Next steps

• Use the comparison tool to find policies with clear, comprehensive coverage
• Review real claim scenarios to see how policies perform in practice
• Check denied claim stories to learn what documentation requirements you can't skip
• Read the Travel Insurance 101 guide for foundational knowledge

Don't just skim your policy—understand it. Fifteen minutes of reading now can save you thousands in denied claims later.