Last summer, a good friend of mine was finally about to take her dream trip. She had the flights booked, the hotels reserved, and her bags practically packed for a country she’d been dreaming of for years. Then, just two weeks before she was supposed to leave, the news broke. Protests erupted in the capital. The images were unsettling: crowded streets, burning vehicles, a government-imposed curfew. Like anyone would, she felt a knot of anxiety in her stomach and reached for what she thought was her safety net for her travel insurance policy. She called them up, fully expecting a sympathetic voice and a path to a refund. Instead, she got a crash course in the fine print.

Her claim was denied. Just like that, her dream trip vanished, and so did a significant chunk of her savings. This is the stark reality of how political unrest affects travel insurance coverage, a gap in protection many travelers do not see until it is too late. Her story is not unique, and it taught me to look at travel insurance in a completely different, far more cautious light. You see, we buy travel insurance thinking it is a catch-all for “anything bad that happens.” But the industry operates on a concept that feels almost philosophical: the “known peril.” In simple terms, if you could have reasonably known about a risk when you bought your policy, it is probably not covered.

For my friend, the U.S. State Department had already issued travel advisories about civil unrest in that country. To the insurance company, her cancellation was a foreseeable outcome, not an unexpected event. Ouch. This is where those official government travel advisories become absolutely critical, far more than just friendly advice. They are the bedrock upon which insurance companies build their coverage decisions. Most of us glance at them, but insurers study them. If a destination is at a Level 3 (“Reconsider Travel”) or Level 4 (“Do Not Travel”) when you buy your policy, standard trip cancellation coverage for events related to that unrest is almost certainly off the table.

The insurer’s stance is, essentially, you knew the risks and chose to go anyway. Let us be honest, that feels incredibly frustrating. We want protection from the unpredictable whirlwind of world events. But insurers are in the business of risk management, not assuming every gamble we take. This leads to the single most important timing issue you will ever encounter with travel insurance: the moment you click purchase. Imagine two people, Alex and Sam, book the same trip. Alex books in January when everything is peaceful and buys insurance right away. Sam books in March, after protests have started and warnings are posted, but still buys insurance. If a coup happens in June, Alex has a strong case for reimbursement; the turmoil was truly unforeseen at the time of purchase. Sam? Sam is likely out of luck. That policy purchase date is everything.

And here is another sticky point: what even counts as a covered event? The definitions are narrower than you think. There is a big, confusing gap between terrorism and civil unrest,” in insurance language. A horrific, violent protest might not meet a policy’s strict definition of terrorism, which often requires the act to be by a recognized terrorist group with a political goal. To a traveler watching the news, it is all just terrifying chaos.

To an insurance adjuster, it is a categorical distinction that can mean the difference between a paid claim and a denial. So, is there any real hope for coverage when the world feels unstable? The only truly reliable option is Cancel For Any Reason (CFAR) coverage. This is an upgrade, and it costs more, usually 40-50% more on your premium for a very good reason. It transfers a huge amount of risk back to the insurer. With a plan like Travelex’s Ultimate plan that includes the CFAR upgrade, you could cancel because you are worried about rising tensions, even without a formal advisory change, and get back maybe 75% of your costs.

You must buy it very early, often within 14-21 days of your first trip deposit. It is not perfect, but it is powerful. It is the closest thing to peace of mind in an unpredictable world. I have spent a lot of time since my friend’s ordeal digging into this, and a few hard truths keep coming up. Many of us assume “comprehensive” means “covers everything,” which it does not. We think our genuine, rational fear is enough to trigger coverage, but it usually is not. The trigger is typically a very specific event listed in your policy documents. If protests block your way to the airport, but there is no official evacuation order, you might be stuck. It feels clinical, but that is the mechanism.

What does this mean for you, planning your next adventure? First, make the State Department’s travel advisory site your first stop, not you’re last. Second, purchase your insurance the same day you book your first big, non-refundable expense. This locks in your coverage window before the news cycle can change. Third, read the exclusions. Yes, it is dull, but the section on “war, civil unrest, and terrorism” will tell you more than any marketing brochure. Finally, give serious thought to CFAR if you have any nagging doubts about your destination’s stability. The world, unfortunately, is not getting simpler. With conflicts and tensions simmering globally, insurance companies are getting more cautious. They are raising premiums, adding exclusions, and sometimes refusing to cover certain destinations altogether.

This makes our job as travelers harder, not easier. We have to be our own risk managers. My friend never got her money back. She learned a very expensive lesson about the intricate, often unforgiving dance between travel insurance coverage and political unrest. Her story stuck with me because it is a powerful reminder: insurance is a contract of specifics, not a blanket of security. Do your homework, understand the landscape of risk, and know exactly what you are buying. Because when trouble erupts, the only thing worse than cancelling a trip is cancelling a trip and realizing you are completely on your own. For the most current official guidance, I always refer to the U.S. State Department Travel Advisories as my primary source.

References

AXA Travel Insurance. (2024). *Does Travel Insurance Cover War & Terrorism?* https://www.axatravelinsurance.com/resources/101/travel-insurance-war-terrorism

InsureMyTrip. (2025). *Travel Insurance Coverage for Civil Unrest on a Trip*. https://www.insuremytrip.com/insuring-your-trip/civil-unrest-choose-to-travel/

Travelex Insurance. *Travel insurance coverage for wars and terrorism*. https://www.travelexinsurance.com/smart-travels/coverage/wars-and-terrorism

HUB International. (2025). *Geopolitical Effects on Travel Insurance: Protecting Your Organization and Your People*. https://www.hubinternational.com/blog/2024/02/geopolitical-effects-on-travel-insurance/

National Geographic. (2023). *Is it safe to go there? The U.S. travel advisory system, explained*. https://www.nationalgeographic.com/travel/article/travel-advisories-state-department-safety