Trip cancellation insurance is designed to protect prepaid, nonrefundable reservations, including flights, hotel reservations, and other bookings if the trip is canceled due to an extraordinary circumstance. There are several important considerations worth noting about trip cancellation policies:

• Each policy lists the specific reasons that are covered and those that are not covered. These reasons vary according to the plan you purchase.
• Standard policies do not cover "change of mind," as in deciding not to go on a trip or fear of travel due to a pandemic, disease outbreak, or political unrest. You need to be unable to travel, not unwilling to travel for coverage to apply.
• Claims due to known, foreseeable, or expected events, epidemics, government prohibitions, warnings, or travel advisories are generally not covered.
• Cancellation insurance only reimburses costs that are not refundable from another source such as an airline or hotel.  
• Most policies do not cover travelers if a foreign destination closes its borders to visitors. The same holds true for a government-issued travel warning to a destination, which is generally not a covered reason to make a claim.

It is crucial to note that most policies do not provide coverage if the policy holder chooses not to travel due to fear or concerns of a pandemic or other health condition in the destination country. CFAR (Cancel For Any Reason) coverage is recommended for this.

What is “Cancel for Any Reason” (CFAR) protection?
CFAR protection is distinct from travel insurance but may be offered in conjunction with, or as an alternative to, a travel insurance policy. Unlike trip cancellation/trip interruption insurance, a CFAR benefit is not designed to only cover unforeseeable events. As the name implies, a CFAR benefit generally applies to cancellation of a trip for any reason, although certain contracts may contain specific exclusions, such as pandemics.  Accordingly, you will need to read the specific terms of the CFAR benefit. 

A CFAR benefit may apply if you decide to cancel your trip for any reason, including border closures or fear of a disease outbreak in your destination country. However, you can expect that CFAR benefits will typically cost between 40-60% more than a standard travel insurance policy and that buying a CFAR benefit now may be more expensive than it was prior to COVID-19. Moreover, CFAR benefits may reimburse only between 50-75% of the cost of your trip.

Under the University's Travel Policy, trip cancellation insurance is generally not an allowable expense.