What to Know About Travel Insurance for This Year’s Predicted Wild Hurricane Season

The forecast consensus for the 2024 hurricane season is not good. The U.S. National Hurricane Center (NHC) is predicting a heavy Atlantic hurricane season, predicting between eight and 13 hurricanes and four and seven major (category three to five) hurricanes. 

And the NOAA National Weather Service’s hurricane forecast, as well as forecast predictions from other private and public agencies, is similarly ominous.

The reason: a perfect storm scenario—warm ocean waters, La Niña development in the Pacific and reduced trade winds/wind shear.

“The 2024 hurricane season kicks off with forecasts indicating potentially record-breaking activity, with predictions from Colorado State University’s tropical meteorology project team forecasting a staggering 23 storms, 11 of which could intensify into hurricanes, including five reaching Category 3 status or higher, travelers face heightened risks during this summer season,” Stan Sandburg, co-founder of TravelInsurance.com told TMR.  

“This marks the most extensive hurricane forecast ever released by CSU. Travel insurance sales for the August and September travel periods are up significantly over last year. We’ve seen strong growth across all destinations including for U.S. domestic travelers.”

The name game
Plan ahead, don’t wait until the last minute. “Purchase travel insurance well in advance to ensure coverage before any storms are named,” Sandburg said. “With respect to named storms, the National Oceanic and Atmospheric Administration (NOAA) tracks storms in the Atlantic and Pacific. Once a storm reaches a certain threshold, the storm is named. Once the storm is named, a new travel insurance plan is no longer available to cover that storm. However, if you purchased a policy prior to the storm being named, a policy would not exclude that storm from coverage.

Travel insurance comparison site Squaremouth also emphasizes the importance of buying coverage before the storm is named. “If your trip is impacted by a storm, travel insurance can cover your losses, as long as you bought your policy before the storm was named,” Jenna Hummer, PR director, Squaremouth told TMR. “If you have a trip planned between June 1 and November 30, consider buying travel insurance shortly after booking your trip to give yourself the best chance of coverage.”

Hummer says Squaremouth’s Current Events Information Center will be updated regularly throughout hurricane season with information about travel insurance coverage as storms hit, including answers to frequently asked questions and official position statements from travel insurance providers.

A spokesperson for Allianz told TMR the same—once a storm is named, you won’t be able to get coverage, so it’s best to buy coverage before the storm is a “known event.” Like the others, Allianz is also preparing for hurricane season by education consumers about the value of travel insurance and the timeline for claims.  

“Depending on the season, we’ve had millions of dollars in claims. This year is expected to be no different,” the spokesperson said. 

CFAR: worth the price
Cancel for Any Reason (CFAR) coverage is especially important this hurricane season, even though it can be pricey, says Ronald R. Assise, CIC, CPRM, senior vice president and shareholder at the Horton Group insurance agency and independent insurance agent with Trusted Choice.

“CFAR coverage is the most expensive in cost, as it allows for cancellation ‘for any reason,’” said Assise. “By nature of the name, the coverage is extremely broad, and subsequently the cost is much higher, comparatively, than travel coverage that would allow cancels for more specified ‘perils’, reasons, such as sickness….”

“This CFAR coverage is purchased far less often than ‘specified peril’ travel coverage, as it is far more expensive, and only reimburses for part of the cost, typically 50-to-75 percent of the total cost,” said Assise.

“As for this year, yes, it should certainly be considered, based on the increased risk of weather-related issues,” said Assise. “But cost will also be even higher this year, based on the increased risk of policy payout on CFAR policies.” 

Choose the destination wisely
“Especially this year, choose your destination strategically,” said Sandburg, “such as heading to the south Caribbean islands of Aruba, Bonaire, Curacao instead of the north Caribbean that are more prone to hurricanes, and obtain insurance that safeguards against flight disruptions, accommodation issues and travel cancellations.”