Taking out a travel insurance policy is an essential precaution for all tourists who plan on traveling to Nicaragua, or anywhere in Central America for that matter. As there are a great deal of different insurers offering a wide variety of products, it is worth spending some time to research the policy that is most suitable for your trip. Before you do this, check to see if you already have coverage, as some credit and bank cards provide basic travel insurance.

Travel insurances policies cover a wide range of potential problems, including cancellation of transportation, delays, hijacking, the loss or theft of valuables and legal expenses. The most important part of any policy is the medical provision. The costs of medical treatment for serious injuries can quickly mount up. Find out how much your insurance will pay for necessary emergency expenses and if your policy includes helicopter rescue and emergency evacuation, should you need to return home, or be flown to the US for serious medical attention. Most policies (and hospitals in Nicaragua) will demand that you pay for your medical treatment up front (usually in cash). If you have to pay cash at a hospital, make sure that you get receipts for any medical care you receive, as you will need to provide copies when making your claim.

Before you leave, make sure that the policy you chose covers all the activities that you intend on doing, or think that you might try; activities such as climbing, scuba diving and even trekking may be considered adventurous activities and thus not covered under a basic policy.

Although medical coverage is extremely important, most travel insurance claims relate to lost or stolen items. If you intend on taking expensive belongings such as cameras, laptops or iPods to Nicaragua, there is a chance that they could be stolen or damaged. Purchase a policy that offers an appropriate level of protection to cover all the items you intend to take on your trip, or consider leaving any extremely expensive items at home. If you are robbed while in Nicaragua, report the incident to the police within 24 hours. Make sure to obtain a copy of the report, as your insurance company may demand this (along with the item’s receipt) when you make your claim.

Basic travel insurance policies may not include any provision for the loss or theft of valuables and, in general, the more money you are willing to spend, the greater the level of protection you will have. If you purchase a more comprehensive policy, the deductibles will be smaller, single item limits will be higher, there may be coverage for cash and the cost of reissuing passports. Check the details very closely to make sure that you are happy with the level of coverage your policy provides.

Note: Be sure to bring your insurer's 24-hour emergency contact number and a copy of your policy number number with you. It is also a good idea to keep your insurance details in an email account so you can access them where ever you are, even if someone steals your bags.