It has recently been reported that Americans are taking fewer vacations. While there are many reasons why this is happening, such as too much work to lack of job security, or perhaps simply the feeling of indispensability, the vacation that is planned has increased in importance.

Once a vacation is scheduled and we are committed to go, travel insurance can provide peace of mind that all won¹t be lost should something unexpected rise.

Traveling involves risk and most of it is financial. We all understand that without insurance, no one would take any risks. Insurance companies have begun advertising this fact, touting in their latest ads that without their coverage business would have ceased to invest, take chances, or expand beyond the here and now to explore their full potential.

While this is true enough, the risks one undertakes with travel, especially in a post 9/11 world are much more personal than business profits. We are making an investment, taking the chance, and hoping that it will bring us closer to our full potential. And for this, many of us will need to insure oursleves against financial loss. While insurers will cover just about anything, they won't cover fear.

Travel insurance is designed to reimburse you for cancellations of flights of hotel reservations, emergency medical care and transportation (or as the policies refer to it, evacuation) and even the cost of hotels and meals should your flight be cancelled or delayed.

The threat of terrorist activity ruining a well-planned vacation is what drives the industry these days. The exclusions ­ what the insurer will and won't pay for ­ have in this world of uncertainty, become the most important part of the policy.

Here are some of simliarities across all types of travel policies. Almost all of the available policies have some sort of terrorism protection wording written into the policy itself. This is not a new addition to these policies. Terror insurance has been around for years.

The devil, as they say, is in the details. While the question of travel disruptions due to terrorism have become an important part of the travel plan for most people, the city you are traveling to would have had to come under attack in the last thirty days for the policy to become active.

In other words, if your destination is someplace other than the city that has been attacked, your fear of travel is not insured. The recent terror threat that was uncovered in England in early August disrupted travel for thousands of airline passengers. Those with insurance had hotel and meals reimbursed. Those with insurance also discovered that because there was no actual attack on the city, cancellation of their flight was not covered.

There is more than terrorism to consider when buying travel coverage. Wars, should they break out before you purchase the policy are not covered even if the war is waged by a group known to be terrorists. Once a tropical storm is named, it is considered a "foreseen event" and no longer covered as a natural disaster.

Even in the case of a natural disaster such as a hurricane, the policy covers you only if you are unable to land at your destination.

While the largest majority of the policies sold cover cruises and tours and often vacation properties, protection for travelers with tight time restrictions also seek travel insurance. Travel insurance is not needed however when flights are hotels need to be rebooked because of some unforeseen event. In almost every instance, the rebooking fee is waived.

Where you are going?
This is a huge consideration cost-wise. If you have always dreamed of a trip to the Middle East, the cost of insuring such a journey will be considerable. Travelers need to understand the conditions of their destination and plan accordingly. If you are buying insurance during hurricane season, you will be fine as long as at the time of purchase no named storm is headed to your destination (no coverage) and the airport is open (no cancellation).

When should you buy travelers insurance?
Although it would be great to wait until the last minute, you need to buy the insurance you want within 15 days of actually putting any money down. Your insurer wants a firm financial commitment on your part that you are going.

Know what you plan on insuring.
While there is an extensive list of companies and their links below, understanding your risk level is important. If this vacation is one of "once-in-a-lifetime, we're-on-our-honeymoon" type vacations and you are locked into a very tight schedule, compare not only what policies will cover but also what they will exclude. This can help you determine exactly what you want. There will be some personal risk evaluation involved.
If you want a policy that will give you a "cancel for any reason" clause, be prepared to fork over a sizable check for the coverage and in many cases, for only a 75% retrun on your costs.

Compare companies?
Use insurance aggregators to compare the major companies using InsureMyTrip.com's tool for a side-by-side look at what is and isn't covered. Read the fine print. Exclusions are usually found there and can contain a few surprises.