Common Insurance Questions When Traveling

When vacationing or traveling, including when you travel abroad, you may have some questions about insurance coverage while you traverse the globe. Read on for some questions you may have when planning your trip.

What if my personal property is lost or damaged when I travel internationally?

Under a homeowners policy, coverage protection also includes personal property. Your personal property maintains its coverage anywhere you go, whether that is domestic travel or visiting overseas. Based on your policy, the actual coverage will have a specified limit. Based on your belongings, like expensive jewelry, your Independent Insurance Agent might recommend you also have additional coverage like a Scheduled Personal Property Endorsement or Personal Umbrella Policy. This additional coverage would supplement your homeowners policy.

What if I rent a car or drive a vehicle when I am on vacation?

It is important to understand what your personal auto policy includes, as rental car coverage could be part of your policy. This could extend to the continental United States and Canada. Check with your IMT Agent to understand if your auto policy’s liability and medical protection coverage includes when you travel overseas.

What proof of insurance do I need if I drive in Canada?

When you cross the border into Canada, you need to bring more than just your passport. Canadian law requires U.S. citizens driving into Canada to provide proper proof of motor vehicle insurance. If you are an IMT personal auto policy holder, Canada is included in your coverage territory. While in Canada, your personal auto policy will provide you with the same coverages and limits you have while operating your vehicle in the United States. Also, if you are involved in an accident in a state or province that requires higher liability limits than the limits currently on your policy, you will automatically be provided with the higher limits specified by law.

Your standard motor vehicle insurance cards are not accepted as proof of insurance by Canadian authorities. To avoid complications and make your trip smoother, contact your local agent and request a Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card. As this Non-Resident Insurance Card is not available digitally, it is best to reach out to your Independent Insurance agent in advance of your travel to obtain your physical card.

While driving in Canada, keep the Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card with you at all times. If a Canadian law enforcement official determines you do not have the proper proof of insurance, you are at risk of being fined or having your vehicle impounded until you can display the proper proof of insurance.

Note: This represents a brief summary of coverage and is not intended to be a precise statement of Canadian law pertaining to non-resident drivers in Canada. Review the actual policy for additional details on coverages, terms, limits, conditions, and exclusions.

What if I rent my home to others while I am away?

Homeowners policies often exclude or provide limited coverage for homeowners running a business in their home. If you list your property for short-term rental with any frequency, this activity may likely be defined in the policy as a home-based business. Many policies contain a business exclusion that eliminates liability coverage of bodily injury or property damage for business activities. It is typical for a policy to include language allowing an owner to take in boarders on occasion, but “occasional” is generally not defined. You should discuss with your Independent Insurance Agent to clarify what your policy coverage includes. You can also discuss with your agent if a landlord policy is right for you. This could cover your home, structures on the property, property contents (such as appliances and furniture), lost rental income due to building damage, legal fees and liability claims.

A second option would be to rent only to guests who can prove they have homeowners, renters or personal liability insurance, as guests may have coverage under their own policy. However, homeowners policies often provide minimal liability coverage for damage to property of others. It is recommended you discuss with your IMT Agent.

If you are using a service like Airbnb, there may be a host protection insurance program for liability coverage. Each online service is different, so make sure to carefully review the terms and consult with your Independent Insurance Agent for guidance.