Should you get cruise insurance? Yes, but ...

By Jana Jones

Cruise writer

updated 4:33 p.m. ET June 15, 2006

When Cruise Critic member Fran Combs arrived home from a recent cruise vacation, she noticed that one (yes, one) shoe was missing from her husband Harlan's bag. They had been packed in the suitcase, which had been placed in the hallway of the ship the night before, had been picked up and transported to the airport, and had made the flight with the Combs back to Virginia. Fran was not only puzzled at the loss of the shoe, she was quite irritated, too, since they were brand-new and expensive.

She sent the purchase receipt to both the cruise line and her travel insurer and was fully reimbursed, for a new pair. Harlan now has three brand-new shoes.

While this isn't the scenario that plays out in most people's minds as they contemplate the purchase of travel insurance for their cruise vacation, it is an object lesson in how the insurance can be of value even if catastrophe doesn't strike.

How to choose cruise insurance
The first question, for almost everyone, is whether or not to buy travel insurance, and the second is: What kind?

Now, we'll say outright that homeowner's (or renter's) insurance will often cover losses experienced while traveling ... but it's not the best idea, because it could raise your premium well above the cost of the individual travel insurance premium if you make a claim -- and it only covers losses of items in your possession, not anything having to do with medical issues or trip cancellation. So it really is better to purchase insurance designed for travelers.

Beyond that key issue, here's another one that can confuse. You can buy insurance that relies first on your homeowners premium and covers anything left over. "There are two kinds of travel insurance," says Judith Carpenter, a cruises-only travel agent based in south Florida, "primary and secondary. Primary insurance covers you from the first penny, and secondary insurance kicks in after your own private insurance has paid out.

She goes on to explain that many policies offer only "secondary" coverage, and she encourages her clients to purchase policies that are primary, "like those sold by Travelex or TravelGuard."

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"Otherwise," she explains, "you can be waiting months for your homeowner's or medical insurance to pay before you can apply to get your deductible covered by the secondary policy, or ... in the case of medical expenses, you can be spending months sending receipts back and forth before you see a dime of the insurance you purchased for the trip. Primary coverage eliminates that wait."

With a primary policy, you are paid for the event or loss outright. With a secondary policy, which kicks in after your homeowner's or medical insurance has already paid, you have to wait for the other insurance to be paid, send receipts, and you are paid the difference between your out of pocket costs and what has already been paid. You have to have a stream of documentation, too.

In the course of researching the information needed for this article, we hoped to be able to give clear and concise information about each type of insurance, but it wasn't that simple. Many insurers offer coverage, and each has a different set of guidelines on such topics as pre-existing conditions, terrorist acts and what constitutes a traveling companion or an "immediate family member."

What we are able to do, however, is to offer a slight overview of the types of coverage available in a way that might help you find what you are looking for, and to help you to decide if you need insurance coverage and what kind to purchase.

Please note: The information provided is for comparison purposes only. Cruise Critic is neither endorsing nor recommending any of these insurance companies or the coverage they provide.

Should I get travel insurance for my cruise?
The easy answer to this question is: "Yes, with qualifications." We found that the cost of basic coverage is quite reasonable, usually between 5 and 9 percent of the cost of the cruise vacation. In fact, coverage for the average cruise price amounts to the cost of about seven alcoholic beverages or one minor shore excursion, so it's well worth it if you build coverage into your price.

First, though, let's discuss what's not covered:

• Bad weather: This is different than weather that causes you to miss or delay your trip. You can't get reimbursed because it rained during your entire cruise.
• Change of mind: You can do that, of course, but insurance won't cover it.
• Change in itinerary: You might want to cancel, but as long as you get a trip, even if it isn't the one you thought you were getting, you aren't covered.
• Pregnancy or childbirth: As long as it's a normal pregnancy and not a medical emergency, you aren't covered.
• War: Not covered, although most policies now have an "Acts of Terrorism" clause which will reimburse you if you miss or are delayed in getting to your origination or ending destination because of acts of terrorism.
• Change in your financial circumstances: You lose your job and can't afford to go ... not covered.
• Pre-existing medical conditions: This exclusion can be waived in certain circumstances (see below).
• Nervous or psychological disorders: Depression, anxiety, neurosis or psychosis ... not covered.
• Frequent flyer miles, free (incentive) cruise: These are considered to have zero monetary value and are not covered.

If your trip is just a weekend getaway, if you're driving your own car to the terminal, or if you haven't paid much for the cruise and haven't got much to lose, travel insurance may not be your highest priority.

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