Baggage insurance: lost, delayed and stolen luggage explained
Baggage cover is the benefit most people think about first and should probably think about last. It is handy for minor losses, but it rarely pays the full value of what you have packed.
By the StarHolidays Editorial Team Updated 3 min read
Key takeaways
- Baggage loss and baggage delay are separate benefits, each with its own limits and rules.
- Single-item and valuables limits can be far lower than the headline benefit.
- Insurers may pay depreciated value instead of what it costs to buy a new item.
- Report losses straight away, and get a police or airline report.
On this page
Loss and delay are two different benefits
Baggage loss, theft or damage pays for belongings that are gone or broken. Baggage delay pays for essentials, such as clothes and toiletries, while you wait for bags that show up late. Each has its own limit and rules.
| Feature | Baggage loss or theft | Baggage delay |
|---|---|---|
| Purpose | Replace what you lost | Tide you over |
| Limit | Usually larger, with sub-limits | Usually smaller |
| Evidence | Police or airline report, proof of value | Airline report, receipts |
| Trigger | The loss itself | Delay longer than the policy's waiting period |
Why the headline limit can mislead
Suppose your policy has a $2,000 baggage limit. It might also have a $250 limit per item and a total limit of $500 for all valuables. Your stolen $1,200 laptop may therefore bring you just $250.
"Valuables" often includes jewelry, cameras, phones and computers, and some policies add a specific limit for electronics. Check these first if you travel with expensive equipment.
How payouts are calculated
Many policies pay the actual cash value, meaning the item's value allowing for its age and condition, and not what it costs to buy a new one. So a three-year-old phone might bring a fraction of its original price. Some policies offer new-for-old terms, but read how those work.
Then there's the deductible. A $100 deductible on a $250 payout leaves you with $150.
What's usually excluded
- Items left unattended, such as in a car or on a beach, or left with a stranger
- Valuables in checked baggage, on many policies
- Cash and travel documents, or limited amounts of them
- Normal wear and tear
- Fragile items, unless damaged in a specified way
- Theft without a police report
- Items you've lost by accident rather than through theft, under some wordings
Word definitions matter. "Unattended" can be stricter than you'd expect, so look it up in your policy.
What to do when bags go missing
At the airport: report it before leaving the baggage area. Get the airline's report and reference number, and ask about its allowance for essentials. Keep your boarding pass and bag tag.
If items are stolen: report it to the local police within the time your policy requires and get a written report. Tell your hotel or tour provider as well if it happened on their premises.
Afterwards:
- Claim from the airline first, as your insurer may require it.
- Keep receipts for essentials you buy.
- Gather proof of ownership and value: receipts, card statements, or photos and serial numbers.
- Claim promptly. Read our claims guide.
Protecting expensive gear
If your camera or laptop is worth more than your policy's limit, consider these options:
- Carry it with you. Keep valuables in your cabin bag and never in checked baggage.
- Check your home insurance. Some home or renters' policies cover belongings away from home.
- Check your credit card. Some cards include baggage or purchase protection.
- Get specialist cover. Gear or gadget insurance may suit expensive equipment better.
- Prepare your evidence. Before you leave home, photograph your items and serial numbers and store your receipts in the cloud.
Is baggage cover worth paying extra for?
Usually not on its own. A lost bag is unpleasant, but rarely financially devastating, and airlines have their own responsibilities. Don't choose a policy mainly for its baggage benefit, and don't accept a lower medical limit for a better one.
Packing tip: put a change of clothes, medication, chargers and documents in your hand luggage. It's the cheapest baggage protection there is, and it's useful however good your policy is.
Frequently asked questions
How long does a bag have to be delayed before I can claim?
It depends on your policy, which sets a specific waiting period, often a number of hours. Keep receipts for what you buy, as most insurers ask for them.
Does travel insurance cover stolen phones?
Often, but usually subject to a low single-item or valuables limit. Conditions can be strict, so check how the policy treats phones and whether a police report is needed.
Does baggage insurance replace items at their new price?
Many policies pay depreciated value rather than the cost of a new item. Check your policy if you are relying on new-for-old cover.
Should I claim from the airline or the insurer first?
Usually the airline. Your insurer may require you to claim from the carrier first, and it may reduce your payment by what the airline pays you.