Key points
- Baggage insurance is considered a post-departure travel insurance benefit that can reimburse you for lost, stolen or damaged luggage and personal belongings.
- Reimbursement levels will depend on your policy’s per-item reimbursement caps, exclusions from coverage and depreciation. Read your travel insurance policy documents for the scope of coverage.
- Documentation is required to file a claim. Be sure to get a loss report, airline incident report or receipts regarding your baggage delay circumstances.
When you travel, your baggage and personal effects are a vital part of your vacation experience. A comprehensive travel insurance policy generally includes coverage for trip cancellation, trip delay and trip interruption, medical expense, emergency medical evacuation and baggage loss protection. Baggage loss benefits provide a safety net if your baggage and belongings are lost, stolen or damaged. Here’s how your baggage protection is covered by travel insurance.
How baggage insurance works
If you arrive at your destination and your bags don’t, it can really put a damper on your experience.
“While minor delays are manageable, going 24 hours or more without your bags can seriously impact your trip,” said Daniel Durazo, spokesperson with Allianz Partners US. “Travel insurance can reimburse you for lost or stolen bags and also provide money to buy the essential items you’ll need while your bags are delayed.”
Your baggage is also covered beyond airport hassles. “Whether misplaced by a travel carrier or stolen from your rental car, your personal effects and baggage can be protected by a travel insurance policy,” said Durazo.
Keep in mind that deductibles and certain exclusions may apply, and all losses also must first be reported to the airline, airport, police or other appropriate authority, he said. This documentation will be requested when you file your claim.
What does baggage insurance cover?
While trip cancellation insurance and medical coverage typically get the spotlight, Durazo said baggage coverage does the heavy lifting of financially protecting your property while traveling. “Baggage coverage is the unsung hero of travel insurance,” he said.
Baggage insurance covers the loss, damage or delay of a traveler’s luggage and its contents by an airline, hotel or tour operator. It also may cover the theft of your travel documents and possessions from your person or vehicle, added Durazo.
Baggage loss coverage
When you choose a travel insurance plan that includes baggage benefits, you can file a claim for the loss or theft of your baggage and personal effects while traveling, as long as your claim meets the parameters of your travel insurance plan. Once you file a claim, this benefit may reimburse you for your missing or damaged items, up to the maximum amount outlined in your plan documents.
You will need supporting documentation including a report from local authorities, your hospitality provider and receipts for the items for which you are submitting claims. Factors like per-item limits and depreciation can affect your reimbursement amounts, and certain items like cash, heirloom jewelry, artwork and antiquities are generally excluded from coverage. Your policy documents will outline these topics.
Baggage delay benefits
Your travel insurance policy’s baggage delay benefit can ease the financial strain if your bag doesn’t arrive when you do. Your policy may provide reimbursement for the purchase of reasonable essential items while you wait to be reunited if your baggage goes on vacation without you, but take note of policy specifics.
“Be sure to read your plan documents to understand the time threshold needed to activate delay coverage, what items are covered, and the maximum limit of the policy,” stated Durazo
There could be a waiting period of between three to 12 hours before your baggage delay benefits kick in. So, when researching a policy, it may be worthwhile to seek out a plan with a delay wait time of less than six hours if possible. This benefit can cover some personal necessities and a change of clothes. For any outlays, be sure to hold on to the receipts which will need to be provided at the time you file a claim to recover these expenses.
What baggage insurance doesn’t cover?
The baggage benefits of a travel insurance policy do not cover pre-existing damage to your luggage or irreplaceable items packed inside, according to Durazo.
“Damage and loss claims are easier to process when original receipts are submitted to document the value of personal items,” he said. “For claimed items without an original receipt, your baggage loss/damage benefits may cover up to 75% of the actual cash value of your possessions.”
Also, like most insurance policies, travel insurance plans have exclusions. “It’s important for travelers to understand the exclusions in their policy, so they won’t be surprised if they need to use it,” said Christina Tunnah, spokesperson with World Nomads. “For example, cash, documents, glasses, hearing aids and orthodontic devices may be excluded from coverage, so those are things a traveler would want to take with them in their carry-on.”
Other situations, like unattended baggage, are generally not covered, she said. “There is not likely to be coverage if a traveler leaves their baggage in a car (whether locked or not) or leaves their day pack or purse in a café while they run to the restroom and their stuff gets stolen,” she said.
Finally, travel insurance also has per-item limits, so it’s a good idea to leave flashy jewelry and expensive handbags — which are also some of the things that make travelers a target for theft — at home, Tunnah said.
How much does baggage insurance cost?
Typically, luggage insurance benefits are included in a travel insurance policy with coverage limits that vary by the type of policy you select. “Consumers should budget between 5% and 10% of their non-refundable trip costs for travel insurance coverage,” suggested Durazo.
How to get baggage insurance
Most comprehensive travel insurance plans include baggage insurance, but it’s important to confirm this benefit before purchasing a policy if it’s important to you.
Review all available post-departure benefits as you choose a travel insurance policy for your next trip. These include benefits that apply after you leave on your trip, such as baggage damage, loss and delay. Your policy documents will outline coverages, limits and exclusions. “Examine the limits for each type of coverage to confirm it meets your individual needs,” said Durazo.
Your travel advisor may be able to select appropriate coverage to complement your travel plans. You can also compare options online or call a travel insurance carrier for guidance.
Top-scoring plan
Worldwide Trip Protector
Medical & evacuation limits per person
$100,000/$1 million
Top-scoring plan
Atlas Journey Preferred
Medical & evacuation limits per person
$100,000/$1 million
Top-scoring plan
RoundTrip Basic
Medical & evacuation limits per person
$500,000/$1 million
How much baggage insurance do I need?
Baggage insurance coverage can range from $500 to $3,000, depending on the policy you choose.
When researching travel insurance plans, Durazo recommends considering how much luggage you plan to carry and what type of items you’ll pack for your vacation to ensure you select the right coverage level for your personal travel plans.
Baggage benefits and reimbursement caps
While you await the safe return of your baggage, Durazo said your travel insurance policy may reimburse you for reasonable essential items up to the policy’s limit. For instance, Allianz plans that include SmartBenefits can provide a fixed inconvenience payment of $100 per insured traveler, per day, due to a covered baggage delay. “No receipts are required to receive this benefit, just proof of a covered delay which is made easier by automated flight monitoring of travel schedules associated with your plan,” he said.
However, baggage delay benefits vary by product, and specific limits are assigned to individual plan elements.
Primary vs. secondary coverage
Baggage insurance is typically secondary coverage, which means you’ll have to seek compensation from other parties — such as the airline that lost or damaged your bag or your homeowners insurance company if your laptop was stolen — first. Only then can you turn to your travel insurance company for reimbursement.
“After filing a claim with the airline, you also can file a travel insurance claim for any difference between the airline’s payout and the full value of your lost or damaged possessions,” noted Durazo.
Travel insurance plans with primary coverage for baggage insurance are harder to find, but they do exist. Policy documents for the iTravelInsured Travel SE plan, for instance, state that the “insurance provided by this policy for all benefits will be paid on a primary basis, regardless of any other coverage.” But the insurer does state that it reserves the right “to recover from any other insurance carrier with which You may be covered” and “seek to recover any payments made by a Third Party.”
How to file a claim for lost luggage
As soon as you discover your bag has been lost or stolen, you will need to file a report, said Tunnah, with World Nomads. “That means a police report in case of theft, or a property irregularity report in case of loss by an airline or travel supplier.”
And, if you are using a secondary insurance policy, you’ll need to file a claim first with their airline or other travel supplier.
“Once that claim has been processed, they’ll file a claim with their travel insurance company, submitting the travel supplier paperwork as supporting documentation,” said Tunnah.
When making a claim, a traveler will need the police or property irregularity report and proof of ownership, including receipts if they have them. She said it’s a good idea to take photos of luggage and its contents before a trip.
When you’re ready to file a baggage claim, you can typically do so online, by phone, in an app or by mail. You will need your travel insurance policy number, your personal information and documentation supporting your claim. Be sure to get a report from your airline regarding the incident and also be ready to provide any receipts for outlays you incurred.
Travel insurance for baggage FAQs
Yes, a comprehensive travel insurance policy typically includes coverage for baggage damage and will reimburse you for lost, stolen or damaged belongings, according to the policy’s terms.
Understand your policy: What travel insurance covers
Baggage insurance covers the financial loss of lost, stolen or damaged belongings during a trip and reimburses for affected items. Check your policy for per-item, per-day and maximum limits as well as excluded items.
Baggage insurance may also include baggage delay benefits, reimbursing you for the purchase of personal items to tide you over until your baggage arrives.
Travel insurance provides many valuable benefits both before and during a trip. One post-departure benefit is baggage protection.
“The comfort and peace of mind that comes with protecting your personal possessions while traveling makes baggage insurance an essential component of travel planning,” said Durazo of Allianz. “Should you become separated from your luggage, having the financial backing to quickly resupply essential items can allow you to get on with your vacation and minimize your worries while you wait for it to be returned to you.”