Let’s consider some examples:
You buy travel insurance for a week sightseeing in London with your daughter. Then the news reports that a bomb has gone off on the Underground in an apparent terrorist attack. If you decide to cancel your trip, your travel insurance would reimburse you for nonrefundable travel costs, because you purchased insurance before any incident occurred.
A bus explodes in Tel Aviv two weeks before your planned tour of Israel. “Yikes,” you think. “Guess insurance is a good idea.” You immediately purchase a travel insurance plan to protect your trip. Shortly before you leave, another bus bombing occurs and you decide you’re going to cancel the trip. Your travel insurance would not cover your trip cancellation, because you purchased the plan within 30 days of a terrorist incident occurring at your destination.