How Travel Insurance Works For Baggage

Baggage loss insurance covers baggage that is lost, damaged or stolen during your trip. It may be included in a comprehensive travel policy or available as an add-on.

The best travel insurance plans provide $2,500 and higher for baggage loss. If your suitcase is full of flip-flops and T-shirts, this is likely much more coverage than you’ll need.

Understanding baggage reimbursement caps and benefits

The maximum coverage per person for baggage insurance on most travel insurance plans ranges from $250 to $3,000.

Most travel insurance policies also have a per item coverage cap, such as one suitcase or piece of clothing. This is important to note because if you have very expensive items, such as a pricey suitcase, there may be a big gap between the amount you paid for it and what your insurance compensation would be. For example, if you have a $250 per item cap and you lose your $4,000 Fendi suitcase, you’d only be reimbursed $250 for that item.

Most policies also include a “specific items” limit for expensive items such as jewellery, cameras and electronics, among other things. There may also be limits for items that are part of a set, such as golf clubs. This amount typically ranges from $250 to $500 per specific item, but some policies may reimburse more.

Some insurance providers offer coverage for certain categories of items. For example, World Nomads that tailor its plans towards adventurous and sports-oriented travellers, provides coverage for sporting equipment theft or loss by a common carrier in the amount of $1,000 for the base Standard plan and $2,500 for the upgraded Explorer plan, with a $500 per item limit.

Baggage loss coverage is typically secondary to other claims you can make, such as reimbursement from the common carrier (like the airline), which offers compensation under section 23 of the Air Passenger Protection Regulations if your bags are lost for more than 21 days. Your baggage may also be covered under your homeowners insurance.

If you do file a travel insurance baggage claim, it’s important to know that reimbursement may not equal the amount to replace the item with a brand-new item. Reimbursement could be the cost for repair or replacement of the item, the actual cash value of the item or the depreciated value, whichever is less.

Baggage delay insurance reimburses you for expenses you have to pay because your baggage is delayed. Check the policy for the rules on the baggage delay times and reimbursement maximums.

For example, if your luggage is delayed for over 12 hours, you can submit a claim associated with your delayed baggage if you have a Blue Cross insurance policy. With CAA Travel Insurance, the benefit kicks in after a 10-hour delay.

Arriving at your destination without your bags can put a wrench in your vacation for sure. If you are without necessary personal items, you can be reimbursed for these expenses under baggage delay coverage.

For example, if you need toiletries, a change of clothes, shoes or other necessities while your baggage is vacationing somewhere else, you can make a claim under baggage delay coverage.

Typical daily allowances for baggage delay reimbursement are in the $200 range, per person, per day. This modest allowance is designed to help pay for necessities, not replace your entire bag’s contents.

Similar to baggage loss coverage, your baggage delay coverage may be secondary to other claims you can make, such as a claim with the airline.

Read your policy to understand per-item limits, exclusions like pricey jewelry, and also limits on the amount you can file for the luggage itself.

While carrying on bags is more convenient, the rules for travel insurance coverage for checked luggage and carry-ons are the same.

Carrying on your bags means there’s much less likelihood of a lost or damaged bag, so you don’t need to place priority on ample baggage insurance.

The amount of baggage insurance you need depends on how much you stand to lose if your suitcases are lost, damaged or stolen. Assess the value of what you’re packing (plus the value of your actual luggage) to determine what amount of baggage loss coverage you might need.

If you’re looking for ample coverage, you can find travel insurance policies with $2,500 or $3,000 in baggage insurance benefits.

Documentation is very important when filing any type of insurance claim. Keep all receipts organized, such as the receipts for what you had to buy during the time your baggage was delayed. You will also typically be required to provide the original receipts or proof of purchase of the items you want to claim when you file a lost or stolen baggage claim.

If your bags are stolen, file a report with the local authorities. If your bags are lost, be sure to get a report from the airline or other transportation supplier.

You can file a travel insurance claim using your policy number through your company’s website, the customer assistance telephone number or through the company’s app.

Like any kind of insurance coverage, there are a number of items that are not covered under baggage coverage. Some of these may include:

• Vehicles and their accessories.
• Furniture or home furnishings.
• Personal items, such as glasses, hearing aids, medication, cosmetics or prosthetics.
• Financial assets, including cash, commercial papers and financial securities.
• Tickets and documents.
• Professional equipment or goods.
• Goods brought in for the purpose of trading.
• Antiques or collectibles.
• Food or perishable items.
• Animals
• Fragile items
• Confiscated items
• Items lost or damaged due to acts of war, terrorism or civil unrest.
• Loss due to wear, deterioration, mechanical failure or vermin.
• Theft from an unlocked car or vehicle.
• Loss due to neglect or recklnessness.

Travel insurance not only protects your checked or carry-on luggage, it also extends to other types of belongings when they’re lost, stolen or damaged during a trip.

Maybe you lose your backpack and it’s got your train tickets and your passport. Although travel insurance won’t cover credit cards or cash, it can help you get replacements. For example, World Nomads provides $200 coverage under the Standard Plan and $1,000 coverage under the Explorer plan in the event of loss or theft of your driver’s licence, birth certificate, travel visa or passport.