No Insurance Against Terrorism : Policies: Travelers are having a difficult time finding protection for themselves against war-related fears and incidents while traveling abroad.

At a time of high concern over the risks of overseas travel, consumers are finding that it’s almost impossible to buy travel insurance that protects them if they cancel a trip because they fear terrorism. They’re also finding that if they seek protection from Persian Gulf-related trouble, they’re pretty much out of luck.

As for just scrapping your vacation plans or business trip when fear strikes, here’s the problem: Travel insurance policies simply do not cover trip cancellation when a consumer makes a personal choice not to travel because he or she is afraid of terrorism.

As for being covered if something horrible should happen on your trip, there is at least some good news: While there may be no specific war-related insurance available, travelers who hold other policies, such as medical/accident coverage, may still be protected if terrorist acts do occur. What is covered depends on the individual insurance company.

Trip cancellation insurance, usually sold through travel agents, typically costs $5.50 for every $100 worth of coverage. For example, on a $500 airline ticket, a premium would cost $27.50. But this insurance generally applies only to travelers who must cancel plans because of illness or death in the family, or for business reasons.

Basic flight insurance, such as the kind offered at airports, will generally pay up to $300,000 for accidental loss of life, limb or sight while traveling as a regularly ticketed passenger on a scheduled airline. The premium on $300,000 worth of coverage averages out to about $10. Again, however, travelers can expect no war-related protection. For example, a typical Mutual of Omaha policy available at most airports states that it “does not pay for loss caused by declared or undeclared war.”

“Individual acts of terrorism and hijacking as the result of declared or undeclared war are excluded from coverage under our war-risk provision,” said spokeswoman Crystall Williams of Tele-Trip, a travel insurance company based in Omaha, Neb. “If an act of terrorism or hijacking isn’t related to the war, it will be covered. We take into account government reports on the incident, and each claim is considered on a case-by-case basis.”

“If the act is connected to the war, then we don’t offer coverage,” said Beth Godlin, a spokeswoman for Richmond, Va.-based Access America, another travel insurer.

However, Access America does allow travelers to cancel or interrupt a trip if an act of terrorism has happened in a foreign city that the person intends to visit within 30 days of that incident.

“Travelers should absolutely file their claims,” Godlin said. “But send documentation, such as newspaper stories reporting the terrorism incident in places you’re scheduled to visit.”

Policies issued by another travel insurance specialist, Travel Guard of Stevens Point, Wis., include a provision that excludes coverage for all war-related incidents, even those taking place far away from combat areas.

“If an insured traveler is harmed by a terrorist act which is linked to a war like the Persian Gulf conflict, this comes under our war-exclusion act and there is no coverage,” explained Peggy Mertes, a Travel Guard spokeswoman.

And, she added, “apprehension of danger isn’t sufficient to warrant (trip cancellation) coverage.”

Travel Guard, however, does offer coverage for injuries from non-war-related terrorism incidents, under medical care/evacuation provisions in its policy.

Travelers Insurance of Hartford, Conn., said that its war-risk provision excludes coverage for any specific area where a war is taking place. “This would cover Iraq, Kuwait and Saudi Arabia right now,” said spokesman Steve Volz. “If you venture into an area where it’s known a war is taking place, all coverage is off. But if you were forced into such a war area, like in a hijacking, you would still be covered since you wouldn’t be in that area by choice.”

Moreover, through medical benefits in its policies, Travelers does offer coverage for terrorism incidents outside the war area if they aren’t war-related.

“Policies vary on terrorism and war-risk provisions, and consumers ought to carefully check these matters out and ask their travel agent for some guidance,” advised Susan Kaplan, who co-owns Martins Travel and Tours in Los Angeles and is also an attorney.

However, travel agents are not necessarily well versed on the various travel insurance provisions.

“Travel agents are not insurance agents, and they don’t always understand the fine print,” said Patty Campbell of Northridge-based Carlson Travel. Campbell is a former chairman of the Assn. of Retail Travel Agents.

“I’m always worried that an agent might inadvertently misinform a client about coverage and it will come back to haunt us,” she said. “Still, agents do have the responsibility for generally advising the client, which includes calling the insurance company with questions.”

While concern about terrorism is uppermost, travelers should not lose sight of other aspects of coverage such as baggage/personal possessions, trip cancellation/interruption and accident/medical aid/evacuation. With some travel insurance, travelers have to buy all of these elements as a package, while other companies allow purchase of single elements.

Some tour operators and cruise lines have developed their own trip cancellation protection. Under these programs, you may be able to cancel for any reason whatsoever.

But make sure you know the specific deadline for canceling. Can you cancel right up to departure time? Do you get a full refund, or is there a service charge for processing the cancellation?