Travel Insurance Explained: Baggage Loss, Theft, or Damage
Unsure of the fine print on a prospective travel insurance policy? This series is designed to spell out the basic forms of coverage that you’ll find. In this article, we’ll look at the coverage surrounding baggage loss, theft, or damage, along with what you need to know.
Photo: Robert Couse-Baker
Can’t Afford to Travel Light?
Indeed, you can’t always carry-on some items, pack some clothes and be good to go. What about all of those electronics and photographic equipment that can become lost, stolen, or damaged?
There are many situations and horror stories that can fill pages under this type of coverage. It is of course quite self-explanatory: this is coverage for when your items become lost, stolen, or damaged in some manner.
Of course, it’s not that simple. There are limits and exceptions that will be involved. You should be aware of the per-person maximum payout as well, which is normally from $500 to $2,500.
What Is Covered?
Honestly, it will really depend on the policy. We’ll examine some items you should be careful with, though.
A number of policies will make a number of exceptions to undermine its value. For instance, one insurer rules out animals, sunglasses, contact lenses, professional equipment, keys, cash, credit cards, telephones, prescriptions, and computer hardware or software.
This is an important lesson. While not all insurers will be this restrictive, don’t be surprised if you have to jump through hoops to find something interesting; many people will pack photographic and computer equipment, of course. If this is the case – you might want to look into insurance riders on your home or rental policy. Many policies will include an item limit – not good news for expensive jewellery (a policy might limit a single item to $500, for instance).
You should also be aware of the amount that you will receive. It is common to only receive the actual cash value (“purchase price less depreciation”) – some will do 70% of that amount if you can’t provide a receipt.
If that isn’t enough, there will be plenty of clauses that rule out certain scenarios. For instance, one insurer will not cover items that are damaged by rodents or animals, electric current, or that are involved in a “mysterious disappearance.”
Is It Worth It?
Let’s be honest: you received the short version in terms of item limits, coverage exceptions, item exceptions, and furthermore. While these policies can be quite involved, they can be worthwhile.
This is most often the case when baggage coverage is added on as an extra. If you are purchasing travel insurance to protect yourself with some other scenarios, it could just be part of the package and worth the extra few dollars. On the other side of things, you might be able to get a policy that isn’t so restrictive.
Whatever the case may be, it would help to look at some travel insurance packages and policies to determine for yourself. Maybe you’ll locate a great policy that offers protection for all of your baggage needs on your next trip.
Related posts:
- An Introductory Guide to Baggage or Personal Effects Insurance
- What to Know: Purchasing Baggage Insurance
- Holiday? Seven Reasons Why You Shouldn’t Go Without Travel Insurance
- Using Travel Discount Sites
- How Travel Insurance Can Make for a Smooth Trip
This article contains general advice about travel insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
START YOUR FREE TRAVEL INSURANCE QUOTE COMPARISON NOW!
Filed Under: Travel Insurance
