What can happen if you under insure a vacation? The cause of this is usually when extra excursions or activities are added to an itinerary after the trip has been paid for and the travel insurance is purchased.
Travel insurance is based on the cost of all travel costs. If you add items to your itinerary your travel insurance can usually be extended by paying an additional premium. Make sure you contact your travel insurance carrier before you leave to get this taken care of. Not making the necessary adjustments to your policy may cause any claims you may need to file to be denied.
If you are adding activities that are considered hazardous or adventure activities they may also be covered by paying an additional premium before you leave. In this case it is very important to talk to your insurance carrier. Common activities such as skiing, scuba diving (up to a specified depth) or backpacking can be covered with upgrades to most policies. But some activities may not be able to be covered by your carrier at all.
It is better to find out what is and is not covered before you leave rather than when you need to file a claim. All policies are different. Don’t assume even common activities are included – they might not be on your policy. Read the policy documents carefully. They will list any activities that are excluded from the coverage as well as any limitations on covered activities. Sometimes these are not always easy to understand. If you have any questions at all make sure you contact the carrier for clarification. It can save you a lot of trouble.
What happens if you decide to go scuba diving after you get to your destination and have no coverage for this activity in your original policy? Well the first thing to do is use that 24 hour assistance number and talk to your carrier. You might find that additional coverage can be purchased or even a separate policy purchased. If that is not an option, you may need to look for separate insurance through the tour operator if you are using one or other local sources of coverage.
The best thing to do though is to plan ahead. The consequences can be serious if you don’t have adequate protection and something happens. Why take the chance?