Benefits of Homeowners Insurance Coverage while traveling abroad and why you may still need to get travel insurance when visiting overseas.
International travel can be extremely stressful, especially if you are not a regular traveler. The reality is that a lot can go wrong, no matter how perfect your planning may be. Plans can get canceled and your baggage can get lost. Jewelry and other precious items are at particular risk since you are not used to the differing crime rates in various countries.
The good news is that insurance will cover a lot of scenarios, and you don’t always have to get extra insurance. In fact, your homeowners insurance covers a lot more than you may think.
Here is what homeowners insurance covers when you travel abroad.
Homeowners insurance covers the contents of your home – i.e. your belongings – even when you are far from home. While you may have to get extra coverage for jewelry and other precious items whether or not you’re traveling, homeowners insurance covers just about everything else, no matter where you are in the world.
As such, theft of your belongings when you are overseas is not as big an issue as you might have thought. It is certainly something you want to avoid at all costs, as it can still ruin your trip and some items may be irreplaceable. But you are not about to get into financial straits because of stolen jewelry or lost baggage.
You can get travel insurance to cover property loss and theft if you do not already have insurance back home.
Homeowners insurance will also continue to cover your home while you are not there, even if a house sitter or friend causes damage to it.
One of the benefits of homeowners insurance is personal liability cover. This is insurance that covers any claims made against you by someone to whom you caused accidental damage. It is important for every American, and covers damages your home causes to people as well.
But it will still come into effect outside the US. Even if you cause damage to a non-American while traveling, your personal liability cover in your homeowners insurance should pay out their claim.
Since homeowners insurance covers your belongings and personal liability, do you need travel insurance?
What Homeowners Insurance Does Not Cover
Homeowners insurance does not cover all of your travel needs. In fact, there are a number of specific instances in which you need travel insurance.
The most common use of travel insurance is to cover the cost of plans which are ruined by unforeseen events. If you have booked flights to another country, accommodation for your time there, a rental car, and a number of activities, you’ve already spent a lot of money on your trip. What happens if you fall ill a day before? What happens if a family emergency requires you to stay home? And what happens if there is another COVID-19 variant causing travel restrictions?
Travel insurance will cover the costs that providers will not refund. Most airlines and hotels will allow free cancellation for a certain amount of time, but as your trip nears, they provide less and less in refunds. Without travel insurance, you can lose a lot of what you spent on bookings.
Another huge expense for which you need travel insurance is health care. Your local health insurance will only cover expenses that occur within the US. If you fall ill or are in an accident abroad, your medical expenses will not be covered. You are also not likely to benefit from subsidized health care in most countries.
You should get travel insurance with health cover, as the cost of medical treatment can add up very quickly. If you need to be evacuated in a medical emergency, your expenses skyrocket. So, if you fall while hiking and need a helicopter to come and rescue you, your travel health cover will save you from major financial strife.
Traveling can be stressful and expensive, but with the right insurance you do not need to worry about losing out financially. Homeowners insurance will cover your personal possessions, but you need travel insurance to cover travel expenses and international health care.