Travelex Insurance says Peru rains and mudslides may not be covered by insurance.

Although almost all travel agents sell travel insurance, most agents will also tell you that they hate doing so. Because, quite frankly, even though travel insurance can help protect an expensive travel investment, often it seems as if insurers do everything possible to say “no” when a claim is actually filed.

And judging by the information Travelex Insurance just sent to travel agents, it certainly looks like they are trying to do just that for some clients affected by the recent problems in Peru. The following is quoted verbatim:

Parts of southern Peru have declared a State of Emergency following recent torrential rains leading to flooding and mudslides. The area of Peru with most impact is the tourist destination of Machu Picchu (world-famous Incan ruins). Travelers heading to these areas of Peru that purchased Travelex travel insurance may be eligible for the benefits listed below.

(note the MAY BE ELIGIBLE)

Now we get to the good part:

Trip Cancellation / Trip Interruption Coverage:
Travelers will be eligible for trip cancellation or trip interruption coverage if a covered reason causes them to cancel or interrupt their trip. The torrential rains, flooding and mudslides alone are not considered covered reasons. These events must result in one of the following situations to be deemed a covered reason to cancel or interrupt a trip:

A cessation of services of their common carrier for at least 24 hours, such as the traveler’s airline into Peru being canceled due to the heavy rains, or the train to the traveler’s final destination not being able to operate;

The traveler’s accommodations being deemed uninhabitable (does not apply to Travel Basic), and

A cancellation of the trip if the arrival is delayed for a covered reason resulting in at least 50% of the trip to be missed (does not apply to Travel Basic).

So, here’s a few things that jump out. First — “Torrential rains, flooding and mudslides alone are not considered covered reasons.” The company does say if the flight is canceled for 24 hours it is covered, or if the train cannot operate it is covered. Which means it sounds like Machu Picchu travelers will be covered, assuming they weren’t stuck there.

But the release says that uninhabitable accommodations are not covered under “Travel Basic,” nor is a delay resulting in most of the trip being missed. So anyone going on a Peru trip not including Machu Picchu with their entry-level insurance might be out of luck.

And for those who were stuck:

For travelers currently in Peru and in need of assistance, they may call the travel assistance phone number listed on their Confirmation of Coverage. The evacuation benefit will only cover the costs in the event of a medical emergency evacuation; however, the travel assistance company will help them in their efforts in getting out of Peru.

Translation, we will help you but you are paying for any evacuation on your own because you are only covered for medical reasons.

Now, admittedly, I am sure all of this was in the fine print of the original policy. But realistically, most people don’t pore over the forms with a fine-toothed comb. And Travelex, like many insurers offers different levels of insurance.

Travelex “Travel Max”, for example, covers 18 reasons, while “Travel Select” covers 17 – dropping “business reasons.” And “Travel Basic” drops “military duty, terrorist incidents, destination becoming uninhabitable and trip delay of 50 % or more.”

Confused yet? And this doesn’t even get into the optional extras such as “Cancel for any Reason” insurance which adds a 50 percent premium to the insurance.

Now, certainly all insurance companies are in business to make a profit. However, it sure would be nice if insurance companies could make it easier, both in purchasing insurance, and in the unforeseen event that passengers have to actually try to file a claim.

Photo: InsureMyTrip.com