We’re here to pull back the curtain on trip cancellation and break down the ways you’re covered. In this post, we go through the “fine print” you need to know to understand what’s protected under your trip cancellation coverage of your Faye policy.
First of all, what is a covered reason?
Covered reasons describe specific events that may happen to you or your travel companion that determine your eligibility and may allow you to make a claim and receive reimbursement on approved claims.
With Faye, trip cancellation coverage is built into most plans that are purchased more than 48 hours before your departure date. Meaning you’re covered for up to 100% of non-refundable trip costs, including flights, hotel bookings, tickets & activities, and quarantine accommodation. FYI: your trip cost is determined by the dollar amount you put as your estimated trip cost when you purchase a Faye policy, so make sure it reflects the sum of the non-refundable expenses for your trip (best practice: exclude fully refundable expenses, i.e., refundable airfare, as it would be given back by the airlines directly). If you have any questions, you can always call our 24/7 support team and increase the trip cost pre-trip if needed.
Faye’s approved trip cancellation covered reasons
Now, to get into the specifics of what Faye’s trip cancellation coverage protects. You can be reimbursed for any of the following covered, unforeseen events:
Medical complications and death
- Your, a family member’s, a traveling companion’s, a traveling companion’s family member’s, or business partner’s death that occurs before departure on your trip.
- Your, a family member’s, a traveling companion’s, traveling companion’s family member’s or business partner’s, sickness or injury, that occurs before departure and is examined and treated by a physician before cancellation (unless it is not reasonably possible to do so); and as certified by a physician, results in medical restrictions so disabling as to cause you to cancel your trip.
- Sickness or injury of your business partner must be so disabling as to reasonably cause you to cancel your trip to assume daily management of the business.
- You or your traveling companion has complications of pregnancy, which are verified by medical records, and such complications occur after you bought a policy.
- You or your traveling companion is quarantined.
Natural disasters and transportation issues
- You or your traveling companion is directly involved in a traffic accident, while en route to your scheduled trip departure city, as documented by a police report.
- Mandated shutdown by local government authorities of an airport or air traffic control system resulting in the complete cessation of services (other than terrorism or an act of war) for at least 6 consecutive hours of your air common carrier.
- Due to a natural disaster, a mandatory evacuation is ordered by local government authorities at your scheduled destination, which prevents you from traveling to or arriving at your scheduled destination.
Friendly FYI that a hurricane is foreseeable on the date it becomes a named storm; therefore, claims are only payable if a hurricane is not foreseeable before your effective date for trip cancellation. - Your or your traveling companion’s primary residence or scheduled destination is made uninhabitable and remains uninhabitable during your trip by a natural disaster or burglary.
Crime and financial defaults
- A documented theft of your passports or visas specifically required for your trip. A police report must be provided.
- You or your traveling companion is the victim of a felonious assault within 10 days before the scheduled departure date.
- The financial insolvency or financial default of an entity that directly provides travel arrangements, including an air common carrier, cruise line, tour operator, or other travel entity, that causes a complete cessation of travel services if the financial insolvency or financial default occurs more than 14 days following your effective date for your trip cancellation benefit.
Work and service obligations
- You or your traveling companion are subpoenaed, served with a court order, required to serve on a jury, or required to appear as a witness in a legal action, provided you or your traveling companion is not a party to the legal action, except if you must appear in a law enforcement capacity.
- You or your traveling companion, or family member, is called to active military duty either to serve or to provide aid or relief in the event of a natural disaster.
- Your or your traveling companion’s previously granted military leave is revoked or reassigned. Official written revocation or re-assignment by a supervisor or commanding officer of the appropriate branch of service will be required. The military leave for the dates of travel must have been approved prior to the effective date of trip cancellation coverage, and the leave revoked or reassigned after the effective date of trip cancellation coverage.
- You or your traveling companion is involuntarily terminated or laid off from your job. You or your traveling companion must have been employed with the same employer for at least 1 continuous year. This does not include temporary or seasonal employment, independent contractors, freelancers, or self-employed persons.
Terrorism and travel alerts
- You or your traveling companion is hijacked.
- A terrorist incident by a recognized terror organization occurs before your trip within 30 days of your scheduled departure date in a city listed on the scheduled itinerary of your trip, provided your travel supplier (if applicable) did not offer a substitute itinerary.
- A travel alert or travel warning for levels 4 and higher is issued for cities listed on your itinerary after your effective date for trip cancellation to a destination specifically listed on your itinerary. The travel alert or warning must occur within 30 days of the scheduled departure date.
When to cancel your trip
Don’t forget that you have to report all cancellations to the travel supplier, like your airline, within 72 hours of the event causing the need to cancel. If the event delays the reporting of the cancellation beyond 72 hours, you should report the event as soon as possible. At Faye, we may not cover increased amounts of unused, non-refundable prepaid payments or deposits that result from all other delays or reporting beyond 72 hours.
What’s the difference between covered reasons and foreseeable events?
Faye and most travel insurance providers do not cover expected or foreseeable events or problems. Simply put, if you’re purchasing travel insurance and you’re already thinking that you might need to cancel for a specific reason, then that reason is probably a foreseeable event. If this is the case, you’re better off planning your trip when there isn’t a high likelihood of canceling.
A common example of foreseeable events is hurricanes. If you’re booking a cruise or Caribbean getaway during hurricane season and you buy travel insurance when there is a named storm headed for your destination and something goes wrong, you won’t be covered. However, if you cover your trip before the storm is named, then it would be a covered scenario, as it’s not foreseeable yet.
Travel the Faye way
We hope we’ve managed to demystify what a covered reason for trip cancellation is! Have more questions? Contact our support team at support@withfaye.com.
Faye is the brand name for customizable travel protection plans offered by Zenner, Inc. and its subsidiaries including Zenner Insurance Services LLC, California license #6006067. Plans consist of travel insurance underwritten by an authorized insurance carrier, as identified in the insurance policy if purchased. Other non-insurance assistance services are provided directly by Zenner, Inc., and Falck Global Assistance LLC. The information on this website is provided for informational purposes only and does not include all terms, conditions, and exclusions of the travel insurance coverage. Some or all coverages may not be available in your state. The avatars next to real comments on our site are for illustration and do not depict real individuals. FAYE is a registered trademark in the U.S. Patent & Trademark Office, owned by Zenner Inc. Click here to review the full disclaimer.
FAQs about Trip Cancellation coverage
Am I covered if I test positive for COVID-19 or another infectious illness before my trip?
Yes. If you purchase a Faye policy and then test positive for COVID-19 (or other sudden illness) before departure, it’s considered a covered medical reason. A doctor’s note confirming you can’t travel is usually enough. Quarantine accommodations due to illness, when in-trip, can be covered, too.
What documentation do I need for a trip cancellation claim?
Provide proof of why you canceled and what you paid. That might be a doctor’s note, police report, or jury summons, plus receipts or invoices for your prepaid, non-refundable trip costs.
How soon do I need to report a cancellation?
Let your travel providers know within 72 hours of the event that caused you to cancel. If an emergency delays you, report it as soon as possible. Waiting too long can affect your reimbursement.
What’s a “foreseeable event?”
It’s something you could see coming, like a named hurricane or a planned strike. Faye can cover unforeseen events, so for example, if you buy your plan before a storm is named, you can be covered; if you buy after, it’s not.
Are airline strikes or travel supplier bankruptcies covered?
Yes, as long as they’re unexpected. If an airline or tour company goes bankrupt 14+ days after your policy starts, or a sudden strike stops travel, Faye can reimburse your non-refundable trip costs or cover change fees to rebook.
What costs aren’t covered?
Faye can cover your non-refundable trip expenses only. Refundable bookings or credits aren’t eligible. You’re also only covered up to your total insured trip cost, which you input at the time of purchase, and late cancellations (after 72 hours) can result in a reduced payout.
What if an immediate family member gets seriously ill or passes away before my trip?
That’s usually considered a covered reason for trip cancellation. If your immediate family member, travel companion, or their family gets seriously ill, injured, or passes away before departure, you can cancel and file a claim.
What if I lose my job or get called for jury duty or military service?
Those are considered covered reasons. If you’re laid off (after one year at your employer) or are suddenly required to serve on a jury or in the military, you can cancel and file a claim.
Are terrorist events or government travel warnings covered?
Generally, yes. If a terrorist incident occurs in a city on your itinerary within 30 days of departure, or if a Level 4 “Do Not Travel” advisory is issued after you buy your policy, you may be able to cancel and file a claim.
Are pregnancy complications covered?
Yes. If pregnancy complications arise after you buy your plan, and a doctor advises against travel, you can be covered. Routine pregnancy or birth isn’t covered.
What if I’m a victim of theft or assault before my trip?
If your passport or visa is stolen, or you experience a serious assault within 10 days of departure, you can cancel and file a claim. Just file a police report for proof.
What if my reason for canceling isn’t listed?
You can still be covered if you’ve added Cancel For Any Reason (CFAR) coverage when you purchased your policy. This add-on to your Faye travel protection base plan lets you cancel for any reason (even personal) and get up to 75% back on non-refundable costs, as long as you do so at least 48 hours before departure.
