Jan 23, 2026
When American special forces extracted leader Nicolás Maduro from Venezuela Jan. 3, the U.S. Federal Aviation Administration closed airspace over parts of the Caribbean — resulting in hundreds of canceled flights and major disruptions.
Travelers were briefly stranded, many surprised to learn their travel insurance didn’t cover them in this situation.
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Recent geopolitical events — including talk of invading Colombia, Cuba and Greenland — have rattled travel markets. They’ve also reignited concerns about what travel insurance covers, particularly amid political unrest, civil disturbances or acts of war.
Travelers could find themselves in a precarious situation trying to get home and paying thousands or tens of thousands of dollars to do so.
Here’s what you need to know about the limits of travel insurance and how to protect yourself.
Your travel insurance doesn’t cover everything
“Consumers assume travel insurance is blanket and covers everything that could possibly happen,” Chrissy Valdez, senior director of operations at Squaremouth, an insurance comparison site, told CNBC. (1)
But that’s not the case.
Geopolitical events and travel advisories
While travel insurance does cover common travel disruptions — such as the cost of a hotel room after your flight has been canceled — most insurers set exclusions for events such as civil unrest, military activity, political coups, terrorism and acts of war (2).
That’s also the case if the U.S. Department of State has issued a Level 4 travel advisory for a country but you choose to go anyway. There are four levels (Level 1 recommends exercising normal precautions, while Level 4 warns against any travel due to life-threatening risks) (3).
These insurance gaps could leave travelers financially exposed to canceled trips, emergency evacuations or medical crises tied to political instability, which could cause a major financial setback.
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You would be left out of pocket, paying to shelter in place, leave via emergency flights or evacuate to a safer destination, especially in areas where airports, ports or roads might be closed down.
High-risk activities
You generally can’t get travel insurance coverage for high-risk activities or extreme sports like skydiving or riding a moped, unless you have a specific rider for it.
And you may be surprised at what's considered ‘high-risk,’ such as hot air balloon rides, ziplining, horseback riding, scuba diving or even hiking above a certain altitude (4).
Delayed or canceled flights
If you’re relying on your airline to reimburse you for delayed or canceled flights, you might also be out of luck.
Recent U.S. Department of Transportation (DOT) rules automate refunds for delayed or canceled flights and speed up the process of being reimbursed (5).
But they don’t change what you’re entitled to be reimbursed for. The Trump administration scrapped a Biden-era proposal that would have required airlines to rebook passengers for free on the next available flight (and cover related costs) (6).
That’s where travel insurance can help, whether it’s a standalone policy, coverage through work or built-in protection on your travel credit card.
Many travelers don’t buy any insurance. One survey from the Aon Affinity Travel Practice found that only 50% of Americans purchase travel insurance — and just 15% of them purchase insurance for every trip (7).
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But travel insurance can help protect your finances and your peace of mind, especially when traveling abroad.
Just be sure to understand what exactly you’re covered for and what’s excluded — and that means understanding what phrases like “government action” and “unforeseen events” actually mean.
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How to choose the best travel insurance for your needs
Different insurers may have different definitions of events like civil unrest and acts of war, so read the fine print and comparison shop to find the best policy and/or insurance riders for your needs.
A travel insurance bundle typically includes trip cancellation, trip interruption, baggage and emergency medical coverages.
You can also add specific coverages or riders onto your policy. For example, if you’re visiting a destination with a history of political instability, you could add political or security evacuation coverage (8).
Another option is Cancel For Any Reason (CFAR) or Interruption For Any Reason (IFAR) insurance, which will come at a higher cost.
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With CFAR, you can partially recoup your costs if you decide to cancel your trip, while with IFAR you can get a partial refund if you cut your trip short (such as the cost of unused hotel rooms and return flights) (9).
Be aware that when it comes to politically sensitive areas, this option might only be valid if you booked your trip before an official travel advisory was issued.
With CFAR and IFAR, you typically only recoup a portion of the total trip cost, around 50% to 75%. But that’s better than 0%.
You can consult the U.S. State Department’s Bureau of Consular Affairs for destination-specific travel and risk information.
If you’re still not sure which coverage is best for your trip, it can help to buy your insurance through a travel agent who can explain exclusions and walk you through various options, including riders.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CNBC (1); TravelInsurance.com (2); U.S. Department of State (3); SecuriGlobe Travel Insurance (4); Christopherson Business Travel (5); Forbes (6); Aon Insurance (7); Redpoint Travel Protection (8, 9)
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Vawn Himmelsbach is a veteran journalist who has been covering tech, business, finance and travel for the past three decades. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, Metro News, Canadian Geographic, Zoomer, CAA Magazine, Travelweek, Explore Magazine, Flare and Consumer Reports, to name a few.
