When you have to call off your trip and you've already paid for nonrefundable tickets or put down deposits, travel insurance may help reimburse you for those costs. Your travel insurance company will give you a specific list of cancellation reasons that qualify you for reimbursement, according to the National Association of Insurance Commissioners (NAIC).

It's important to understand the difference between trip cancellation insurance coverage and a trip cancellation waiver offered by some cruise or tour companies. According to the NAIC, these waivers are not insurance and can have many restrictions. Additionally, the Insurance Information Institute (III) says if your travel company develops financial trouble, a waiver may not guarantee that your travel costs will be repaid.

Covered trip cancellation reasons may include:

Covered illness or injury: You, your travel partner or children traveling with you get seriously ill or pass away.
Natural disaster: A covered hurricane or other covered event makes your destination uninhabitable or shuts down airline service.
Financial default: Your travel company faces financial problems that affect your trip, or the company goes out of business.
Other: Your policy may list additional, qualifying reasons to cancel a trip, including being called to jury or military duty.