Is non-refundable deposit covered by insurance?

[clan]

If I book a cruise with a non-refundable deposit and I purchase CFAR insurance (probably through cruise line), will the deposit be covered by the insurance?

[GeezerCouple]

35 minutes ago, clan said:

If I book a cruise with a non-refundable deposit and I purchase CFAR insurance (probably through cruise line), will the deposit be covered by the insurance?

 

I'm not aware of any exclusion for that, as long as you start the insurance within any required time after the first payment (refundable or not).  That's usually 10-20 days, depending upon state.

 

We had thought about this about 5 years ago.  We went on a cruise on Hurtigruten, which has (or had?) very high deposits, much of it non-refundable.  But we booked late, so we were in full penalty stage from the start.  We do always get CFAR, but not for the reason you mention.

 

However, when we were considering another cruise on Hurtigruten, we discussed how that big non-refundable deposit would probably only be 1/4 of that amount if we cancelled early, because of the CFAR 75% reimbursement.

But we didn't look into it definitively, and right now, we aren't making many travel deposits at all. 😞 

 

Be careful about cruise line CFAR.  Isn't it usually cruise credits rather than cash back, for most cruise lines?  If so, and that works for you, then great! 😉 

 

GC

[iamtrustworthy]

On 5/21/2022 at 12:21 PM, clan said:

If I book a cruise with a non-refundable deposit and I purchase CFAR insurance (probably through cruise line), will the deposit be covered by the insurance?

Hi clan,

 

Are you aware that the plan you will get from the cruise line is not a real travel insurance plan? It is a "Pre-Departure Waiver" Plan.

 

What is commonly known as a “pre-departure waiver / protection” plan is mostly a promise to pay on the part of the cruise line, tour operator or travel supplier for the trip cancellation and trip interruption benefits. These plans can include elements of insurance to pay claims for trip delays, accident and sickness medical benefits, evacuation and/or baggage protection.

 

Is everything called “travel insurance” really insurance?

No. The phrases “travel insurance”, “trip insurance” and “cruise insurance” are glibly thrown around causing many people to assume all plans are essentially the same – they are not. And there are a few important differences that many people are not aware of.

 

I hope this helps you.

 

Steve Dasseos

 

[Tapi]

On 5/21/2022 at 1:21 PM, clan said:

If I book a cruise with a non-refundable deposit and I purchase CFAR insurance (probably through cruise line), will the deposit be covered by the insurance?

Quick answer: Read the fine print. 
 

Not all insurance policies cover the same things. Some policies may compensate you for any non-refundable amount (including the deposit portion of your cruise fare) while others may not. Others may just offer you a partial amount. 

 

Even when two different policies say that they cover the same things, the wording may be different which may exclude certain instances. I give you this example:

 

A few years ago, I purchased insurance with a “cancel for work reasons” clause. One of the policies that I looked at specified that a refund would be issued “if a pre-awarded vacation was canceled by the employer”. Another policy specified that a refund would be issued “if required to work by the employer”. Well, since I technically didn’t have a pre-awarded vacation, I went with the second policy. Sure enough, when my employer couldn’t give me the time off, all I needed was a letter from them, stating that I had to work on those days. A full refund was issued by the insurance company without any issues.

 

So long story short, read the fine print of the policy that you intend to purchase so that you know exactly what to expect.

Edited May 22, 2022 by Tapi