Will Travel Insurance Pay For A Nicer Hotel If You're Ill?

Finding an awesome hotel is often a top priority for travelers. But if you get sick while traveling, you might want to find comfort in an even better hotel. Will a travel insurance policy cover a pricey hotel upgrade?

In some cases, a policy's travel delay benefit can reimburse you for the cost of accommodations if your trip is delayed due to a sickness or a travel issue.

"Many travel insurance policies include a travel delay benefit, which reimburses meals and accommodations when a traveler is delayed for a set period of time," says Steven Benna, a spokesperson for Squaremouth.

In order to be eligible for reimbursement, your delay must be caused by a reason that's listed in the policy. Most commonly, this includes bad weather or a flight that's delayed due to mechanical problems, says Benna. Some travel insurance policies also provide trip delay benefits due to sickness or injury of the traveler.

Can You Upgrade Your Hotel During a Trip Delay?

A travel insurance policy will have a limit on the dollar amount for trip delay reimbursement, but you can choose where you stay – even if it's the Ritz. "There is no limit to the type of accommodations that can be booked during the delay, says Benna.

Check both your per-day limit and your total limit on coverage if you want to stay within the limits of the policy.

"For a covered trip delay, they have a daily benefit limit up to a total aggregate," says Carol Mueller, a spokesperson with Berkshire Hathaway Travel Protection.

You can book the best hotel in the city if you're willing to pay the price difference yourself. If the per-night cost of a luxury hotel is more than the daily benefit, you will only be reimbursed up to the benefit maximum.

Most travel insurance providers offer trip delay coverage when there's a delay of a common carrier. It's harder to find trip delay coverage for illness and injury. For example, only four providers offered through Squaremouth include sickness or injury as a reason covered under the travel delay benefit: Arch RoamRight, battleface, Generali Global Assistance and Travelex.

What About Hotels for Covid Quarantining?

The travel delay benefit can apply to quarantine due to Covid-19, says Benna. In order for any benefits to apply, you must test positive for Covid while on the trip.

There are no travel insurance benefits if you have to quarantine upon arrival simply due to state or country law.

Benefits would only kick in if you test positive for Covid during the trip and have to quarantine.

The travel delay benefit can also cover the cost of meals during a quarantine.

Read more about travel insurance for Covid quarantine.

In a Nutshell

You can't really pick a plan that allows for a pricey hotel if your trip is delayed. But you can use your existing travel insurance benefits for whatever hotel you want.

"There is no rule on how to upgrade per the insurance policy," says Bailey Foster, a spokesperson for Trawick International. "The traveler must comply with the daily lodging limit in their insurance policy." If you spend more, it then becomes your own out-of-pocket expense.

Be sure to read and understand your policy: