Read the fine print! "Make sure you"re buying from an insurance company that is licensed and bonded." Stallings says. And before you buy, ask questions to find out exactly what a policy covers. A few should cover the following topics.

Primary vs. Secondary Coverage

Primary coverage pays for your losses regardless of other insurance coverage you have. Secondary coverage only pays for what your personal insurance doesn"t cover.

Direct Payment vs. Out-of-Pocket and Reimbursement

"You"ll hardly ever be able to avoid paying upfront for medical treatment overseas," Stallings says. And it"s not always within the insurance company"s control. Some hospitals overseas require payment in advance of providing services. Either way, it"s important to know what to expect and plan for how you would cover medical emergencies abroad.

Pre-Existing Medical Conditions

Most TCI polices don"t cover cancellation for a pre-existing medical condition. If you, a traveling companion, or a close family member at home has a medical condition that could cause you to stay home from your vacation, buy insurance early. Most TCI plans will waive the exclusion for a pre-existing condition if you buy the insurance within seven to 14 days of your first prepayment.

Hurricane Coverage

"People are more mindful about hurricane insurance since Katrina," Stallings says. "But there are huge misconceptions about what is covered." Most policies only cover evacuation costs if the hurricane actually strikes the place you are staying. A hurricane warning doesn"t guarantee reimbursement, and some policies may require 48 hours of flight delays or cancellations, or a mandatory evacuation, before coverage kicks in.

Start and Stop Dates

One day could make a huge difference if your flight is delayed and your cruise leaves without you. Make sure your TCI policy or cruise line waiver covers you up until the day of departure. If you have travel and baggage delay insurance, find how many hours your flight and luggage must be delayed before the insurance takes effect.

Terrorism and Civil Unrest

Most TCI includes specifically-defined "outbreaks of terrorism" in the place you are traveling to if the outbreak occurs within 30 days of departure. Some policies require a U.S. State Department warning before they"ll cover you, and some high-risk destinations, such as Israel, may not be covered at all. If terrorism breaks out somewhere else in the world, you"re out of luck. "You can"t cancel just because you"re anxious," Stallings says.

Travel insurance almost never covers war, strikes, and civil unrest, and it is often up to a tour company"s discretion if the outbreak is severe enough to cancel a trip. Shortly before Virginia resident Erin Monroney was scheduled to leave on an African safari, violence broke out in Kenya and she was shocked to find out that the Kenya portion of her tour had not been canceled and her travel insurance would not pay to change her flights. "I was furious," she says.

This is not uncommon, according to Stallings. If the unrest is localized, tour companies will often re-route trips to safer areas of the country rather than cancel a trip completely. "In Kenya, there are pockets of trouble, but the vast majority of the country is still operating," he says.