Does Travel Insurance Coverage Include Your Luggage? Here's What We Know

That moment you realize you're the only one left waiting for your luggage at the airport is an unpleasant feeling, no matter whether you are leaving for a vacation or returning home. Thoughts of where your luggage might be, what you'll do without it, or how long it will take to arrive can stir up quite a bit of anxiety.

Many travelers plump for travel insurance, but what does travel insurance really cover? Does it include luggage? Are there specific rules to travel insurance policies when it comes to luggage? Well, the simple answer is that it depends on the type of travel insurance you have. In most cases, travel insurance will cover lost, damaged, or delayed luggage — up to a certain amount. Of course, this isn't always as black and white as travelers would like, and all the usual trappings of insurance are waiting, adding another level of headache to the whole "missing luggage" part. Let's try to clear up some of the fog.

What luggage issues are covered by travel insurance?

One of the main aspects of baggage travel insurance is covering lost luggage. If your airline is unable to locate your luggage and it is declared as permanently lost, it is possible to file a claim to receive compensation for it. One tip to ensure you get the most compensation possible is to take photos of your luggage and keep receipts of any valuable items you've purchased. While it won't ensure the full amount is reimbursed, it can help you receive compensation up to a certain amount. Depending on your policy, this can range from $500 to $3,000 per person. Another case where compensation is possible is if your luggage is delayed for anywhere between 12 to 24 hours, forcing you to buy new items within that period. Just remember to keep receipts of any purchases you made for necessities and essential items such as toiletries and garments. 

Damaged luggage is also liable to compensation under certain insurance policies. It is always best to document your luggage before setting off to be able to prove that it was in good condition and eligible for compensation. When it comes to lost, stolen, or damaged luggage, it is necessary to file a police report to be able to claim compensation. 

What luggage problems are not covered by travel insurance?

One thing you should consider is that valuable items are usually not covered in travel insurance policies for luggage — another good reason to keep jewelry and valuable belongings in your cabin bag. It is always wise to check if your travel insurance has a limit to cover valuable items such as electronics, jewelry, or luxury goods. If you're traveling with these items, it is worth going the extra mile to find suitable coverage, even if you have to pay extra.

Unsurprisingly, pre-existing damages or general neglect will not be covered by your insurance. That also means that a traveler is responsible for ensuring that their luggage is secured properly. Any failure to do so will mean that damage is not considered the fault of the airline, preventing travelers from getting compensation. 

Keep in mind that there are limits to insurance policy payouts and how much they can reimburse for luggage or even one specific item. You are also required to keep your baggage tag and boarding pass safe to go through the process of filing a claim. Be sure to check out what your specific travel insurance policy includes regarding luggage before you plan your trip.