Lost or Stolen Baggage Protection...and Its Limitations

By Dan Drennen, Director, Travel

  • Originally published November 28, 2011 , last updated December 30, 2015
Lost or Stolen Baggage Protection...and Its Limitations

If you are considering the purchase of travel insurance to protect your belongings while traveling, please be aware that the majority of travel insurance plans have specific per-item coverage limitations.

Coverage for expensive items like laptops, iPads, cameras, jewelry, or precious metal items generally have an aggregate maximum combined total that would be reimbursed for those items. For example, the popular Travelex Travel Max plan provides up to $2,500 per person of Baggage and Personal Effects coverage. That sounds pretty good, but let’s see exactly what the policy Description of Coverage (DOC) reveals about the coverage:

BAGGAGE & PERSONAL EFFECTS BENEFIT:
Items Subject to Special Limitations We will not pay more than $600 (or the Baggage and Personal Effects limit, if less) on all losses to jewelry; watches; precious or semi-precious gems; articles consisting in whole or in part of silver, gold, or platinum; cameras, camera equipment; digital or electronic equipment and media; and articles consisting in whole or in part of fur. Items not included above are subject to a $300 per item limit.

PROFESSIONAL BUSINESS PROPERTY BENEFITS:
The Company will reimburse you up to a maximum of $500, subject to a $150 Deductible per occurrence for loss, theft or damage to a laptop, PDA (Personal Digital Assistant), cell phone or other professional equipment provided you have taken all reasonable measures to protect, save and/or recover your property at all times. The laptop, PDA, cell phone or other professional equipment must accompany you during the Covered Trip. In case of loss, theft, or damage to your laptop, PDA, cell phone or other professional equipment you must report the incident to the airline, airport, local police or other such local authorities and obtain their written report of your loss.

The baggage limitations listed within Travel Max are not unusual and are found in most of travel insurance plans we offer. However, there are two plans available that offer a $1,500 Baggage and Personal Effects Benefit without the per article limitation. On both of these plans, items not covered include property used in trade, business or for the production of income. Always read the DOC for any insurance policy you purchase.

CSA FreeStyle Luxe: Baggage Protection $1,500
HTH Trip Protector Preferred: Baggage Protection $1,500

Common policy language found for:

YOUR DUTIES IN THE EVENT OF A LOSS:
In case of loss, theft or damage to Baggage and Personal Effects, you should: 1) immediately report the incident to the hotel manager, tour guide or representative, transportation official, local police or other local authorities and obtain their written report of your loss; and 2) take reasonable steps to protect your Baggage from further damage, and make necessary, reasonable and temporary repairs. We will reimburse you for these expenses. We will not pay for further damage if you fail to protect your Baggage.

Our Policy Picker at TravelInsuranceCenter.com makes it easy for you to quote, compare, buy and save on travel insurance packages offered by leading insurance carriers.

If you are planning to travel with high-priced items and cannot find enough coverage through a travel insurance policy we suggest you check with homeowners or renters insurance.