From amust2407:
Depending on which company you purchase the insurance through, travel insurance will either reimburse you for the money you?ve had to put up in advance if your trip has to be cancelled for a covered reason(sickness, family death, bad weather), or the travel insurance will help you rebook your plans to another time that?s available.
Also, some travel insurance plans provide some tiype of medical coverage in case you get injured or killed while on you trip. Some plans will help cover your property if it?s stolen while on the trip. Some will help with the purchase of temporary clothing if the airline sends yours to another location.
As you can see, there are many things that travel insurance can do, and I would ALWAYS recommend it if you?re planning a vacation where there?s a good amount of money invested.
Source: http://area702.com/what-is-travel-insurance-2/
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