Vacation Rental Cancellation Insurance Options and Benefits

There are several vacation rental cancellation insurance options available to help protect your investment. Some popular options include Cancel For Any Reason (CFAR) coverage, which can provide up to 75% of your trip cost back if you need to cancel for any reason.

CFAR coverage is often more expensive than other options, but it can provide greater flexibility and peace of mind. For example, if you need to cancel your trip due to a family emergency, CFAR coverage can help you recover some of your costs.

Travel insurance policies often come with various benefits, such as trip cancellation, trip interruption, and travel delay coverage. These benefits can help you recover costs associated with trip cancellations or interruptions, as well as provide reimbursement for travel delays.

Some travel insurance policies also offer additional benefits, such as medical expense coverage, which can help cover medical costs if you get sick or injured while traveling.

CFAR, or Cancel for Any Reason, coverage is a valuable addition to your vacation rental cancellation insurance policy, but it's essential to understand what's covered and what's not.

To be eligible for CFAR benefits, you must purchase the policy within 10-21 days of making the initial trip payment.

CFAR coverage can reimburse you 50% to 75% of your prepaid, nonrefundable trip costs, depending on the policy, if you cancel your trip for a reason not already included as a "covered reason" under trip cancellation coverage.

You can use CFAR to cover flight and trip costs that are prepaid, nonrefundable, and not already included as a "covered reason" under trip cancellation coverage in your comprehensive travel insurance plan.

Here are some examples of reasons you can cancel your trip for and receive reimbursement under CFAR:

• You don't feel comfortable traveling due to COVID-19 cases or quarantine recommendations.

• Your new passport didn't arrive on time.

• You have safety concerns about your destination.

• A family or work obligation prevents you from taking the trip.

• Your travel companion can no longer make the trip, and you don't want to travel alone.

• Your flight or itinerary was changed, and you don't love the new plan.

• You have a pre-existing condition that impedes your ability to travel.

• Travel guidelines for your destination changed, and it's recommended to not travel there.

To qualify for CFAR, you must insure 100% of your pre-paid, nonrefundable trip costs, and most policies require you to cancel your plans at least 48 hours prior to your scheduled departure.

You can't cancel or interrupt your trip for just any reason and expect reimbursement under your trip cancellation/interruption policy. Your policy will include a specific list of reasons, known as "covered causes", that entitle you to file a claim.

These covered causes can be broken down into medical causes and non-medical causes. Medical causes include unexpected or unforeseen illnesses, injuries, or deaths of an insured person, travel companion, or immediate family member.

Some common non-medical covered causes include flight cancellations due to weather delays, missed flight cancellations, being summoned for jury duty, job loss, a disaster at your residence in Canada, and a Government of Canada issued advisory against travel to your destination after the date of your booking.

It's essential to read and understand the covered causes when comparing coverage, as they can vary among insurance providers and policies.

If you're considering VRBO's Travel Protection plan, you'll be pleased to know that it includes Trip Cancellation coverage as part of its coverage. This coverage allows you to be reimbursed for prepaid, nonrefundable travel costs if you have to cancel your vacation for a covered event, such as an illness or a natural disaster.

Here are some examples of covered events for VRBO cancellation insurance:

Trip Interruption Insurance, on the other hand, reimburses you for the unused portion of any eligible, non-refundable travel expenses if you need to come home early after you have departed for your trip due to a covered cause for interruption.

CFAR, or Cancel For Any Reason, is a type of insurance that lets you cancel your trip for any reason, not just a covered cause. Most policies require you to purchase CFAR within 10-21 days of making the initial trip payment.

You can purchase CFAR coverage when adding it to your travel insurance policy. Be sure to read through the specifics, as each policy is unique. Typically, you'll need to cancel your plans and notify any travel suppliers at least 48 hours prior to your scheduled departure.

If you cancel your trip, you'll receive a 75% refund on prepaid and nonrefundable expenses, although some policies may only pay back 50%. To be eligible for CFAR benefits, you must insure 100% of your pre-paid, nonrefundable trip cost.

Trip Interruption insurance, on the other hand, reimburses you for unused trip expenses if you need to come home early due to a covered cause. It also covers one-way economy airfare back home, subject to a maximum coverage limit.

Here's an example of how trip interruption insurance works: Let's say you rent a condo for 4 months at $4,000 per month, and one month into your trip, you need to return home. You'd be reimbursed for the unused 3 months, which would be $12,000, but this amount would be subject to individual policy limits.

Premiums for vacation rental cancellation insurance are based on the value of your non-refundable travel expenses.

Typically, premiums range from 5% to 10% of the value of the travel expenses you're insuring, especially for mature travellers.

To get an accurate quote, you'll need to know the value of your non-refundable travel expenses in Canadian dollars.

If you're booking through a travel agent, it's often best to purchase Trip Cancellation/Interruption insurance at the time you book your travel arrangements.

You can usually purchase insurance after booking your travel if it's been a short time since booking, allowing you to shop around for better coverage options and pricing.

If you're booking a vacation property rental, you may not have the option to purchase insurance through a travel agent, so buying later on can be beneficial.

You may also want to consider buying insurance later if you're not booking through a travel agent.

The value of your eligible non-refundable travel expenses is a key factor in determining premiums for trip cancellation and interruption insurance.

Premiums are based on the value of these expenses in Canadian dollars, so be sure to know this amount when getting a quote.

Your age and the insurance provider you choose can also impact your premium.

Typically, trip cancellation/interruption insurance premiums for mature travellers range from 5% to 10% of the value of the travel expenses being insured.

Cancel or Interrupt Policies are designed to protect your vacation rental investment in case you need to cancel or interrupt your trip. You can use trip cancellation insurance to cover flight and trip costs that are prepaid, nonrefundable, and not already included as a "covered reason" under trip cancellation coverage in your comprehensive travel insurance plan.

There are eligibility requirements, so not all travelers will qualify, and most policies will reimburse you 50% to 75% of your trip costs, unless otherwise noted. Some common reasons to cancel or interrupt a trip include unforeseen illness or injury, a family or work obligation, or a change in travel guidelines for your destination.

If you purchase an all-inclusive travel insurance policy, the trip cancellation/interruption component will have a fixed coverage limit, so you may want to consider getting additional coverage if the value of your trip exceeds the limit. Covered causes can be broken down into medical causes and non-medical causes, and some common medical covered causes include an unexpected or unforeseen illness, injury, or death of an insured person.

Here are some common non-medical covered causes:

Some vacation rental companies, like VRBO, offer trip cancellation insurance as part of their coverage. This coverage allows you to be reimbursed for prepaid, nonrefundable travel costs if you have to cancel your vacation for a covered event.