What does travel insurance cover for lost baggage?

Travel insurance typically covers the loss, theft, or damage of your checked-in and carry-on baggage. It provides reimbursement for lost personal belongings, including clothes, electronics, and travel essentials. However, coverage limits apply, and valuable items like jewelry or cash may have restricted compensation. Always check your policy details.

Can I reinstate my policy after surrendering it?

No, once a policy is surrendered, it cannot be reinstated. If you need coverage again, you will have to purchase a new policy, which could be more expensive due to increased age or health conditions.

How do exclusions affect claim settlements?

If a claim involves an excluded risk, the insurer will deny coverage, and the policyholder will be responsible for covering the loss out of pocket.

What is reinsurance?

Reinsurance is a financial arrangement where an insurance company transfers part of its risk portfolio to another insurer (the reinsurer) to reduce its exposure to large claims. This helps insurers stabilize their financial position, protect against catastrophic losses, and maintain their ability to underwrite policies.

What happens if I settle with the at-fault party before subrogation?

If you settle directly without informing your insurer, you may forfeit your insurer’s right to subrogation, potentially violating policy terms and making you responsible for reimbursing the insurer.

Does short-term disability cover pre-existing conditions?

Some policies exclude pre-existing conditions for a set time, usually 6 to 12 months, before providing benefits for those conditions.

What is private health insurance?

Private health insurance is a policy that individuals or families purchase from private companies to cover medical expenses not included in government programs. It can cover hospital stays, outpatient care, prescription drugs, dental, and vision services, depending on the plan chosen.

Does a policy lapse affect future insurance purchases?

Yes, a history of policy lapses may make it harder to buy new insurance, as insurers may view the policyholder as a higher-risk customer and charge higher premiums or impose stricter conditions.