Certified Travel Agent Practice Test

Trip cancellation insurance is a common type of travel insurance designed to protect travelers from financial loss due to unforeseen events that may prevent them from taking their scheduled trip. It typically covers scenarios such as illness, death in the family, severe weather, or other emergencies that could lead to cancellation. This type of insurance allows travelers to recover non-refundable costs for flights, hotels, and other pre-paid expenses, thus providing peace of mind when planning a trip.

Health insurance, while important for travel, primarily covers medical needs rather than trip-related financial losses. Liability insurance typically pertains to coverage against claims resulting from injuries and damage to people or property, and it is not specifically designed for travel purposes. Homeowner’s insurance provides coverage for one’s home and possessions but does not address travel-related issues, making trip cancellation insurance the most relevant option for protecting investments made for travel.