Does Travel Insurance Cover Lost Luggage? Your 2025 Claim Guide

Understanding Baggage Insurance

Often included under comprehensive travel insurance, baggage insurance guards your possessions against damage, theft, loss, or delay. It's meant to enhance rather than replace the coverage airlines offer. Airlines have limited liability; their maximum for domestic trips is $3,800, and for international flights, it is roughly $1,780 (subject to change, as adjusted for inflation every five years). Airlines have broad lists of exclusions, usually not covering electronics, jewellery, cash, or other valuables, and routinely devaluate products.

Coverage: Loss, Delay, and Damage

Typically, travel insurance covers personal items lost, stolen, or destroyed during your journey and baggage. There are, nevertheless, restrictions, including per-person maximums (e.g., $500 to $3,000), per-item limits (e.g., $50 to $500), and particular limits for high-value items (e.g., $250 to $1,000 for electronics or jewellery). One plan would cover up to $2,500 per person with a $600 per-item restriction and a $50 deductible, while another might offer $750 per person with a $500 per-item limit. Always closely go over your policy language. Specific plans exclude theft from separately transported items or unattended cars or locations. Direct filings of coverage for damage resulting from Transportation Security Administration (TSA) inspections should be made to the TSA.

Coverage for baggage delay reimbursements for purchases of necessary things while you wait for your delayed bags. Usually spanning six, twelve, or twenty-four hours, most plans pay for reasonable expenses up to a daily or trip maximum (e.g., $100 to $1,000). While one coverage would cover $200 after 24 hours, another might cover $500 after three hours. Usually, this coverage covers the trip outbound only—not your return trip.

What Isn't Covered?

Generally speaking, baggage insurance excludes items including animals, vehicle parts, perishable goods, credit cards, travel papers (though some policies provide separate coverage for passports), drones, and occasionally even pricey items like jewellery or laptops beyond a specific limit. Coverage can also be void in negligence, unattended luggage, and extreme sports activity. Always closely examine the policy exclusions for specifics.

Finding the Right Baggage Insurance

Many times, complete travel insurance policies combine luggage coverage. Consider your location, trip length, luggage and item worth, and travel expenses when evaluating plans. While some travel credit cards cover just loss (e.g., The Platinum Card® from American Express), others provide luggage insurance as a bonus, sometimes covering loss and delay (e.g., Chase Sapphire Reserve®, Chase Sapphire Preferred® Card). Cards like the Ink Business Preferred® Credit Card can provide coverage for business visitors. Consider a standalone baggage insurance policy from a provider like Allianz, AIG, World Nomads, or Berkshire Hathaway Travel Protection if the value of your bags exceeds these restrictions or if you require specific coverage—say, for sports equipment. Annual travel insurance may be affordable for frequent travellers, but be sure it provides enough luggage coverage for your needs.

Filing a Claim: A Step-by-Step Guide

Report Immediately: Before leaving the airport, file a Property Irregularity Report (PIR) with the airline or other carrier. Obtain a file reference number and document everything.

Document Everything: Keep your baggage claim ticket, boarding pass, receipts for checked baggage fees, and any communication with the airline. For lost items, file a police report (mainly for theft) within 24 hours.

Contact Your Insurer: Notify your travel insurance provider and provide them with the PIR and file reference number. Some plans include services like Blue Ribbon Bags to help track and expedite luggage returns.

Gather Documentation: Collect receipts for essential items purchased during a baggage delay. Provide receipts, photos, or other proof of ownership for lost luggage or costly items. Some policies cover depreciation, but not all.

Complete the Claim Form: Fill out the claim form provided by your insurer, providing accurate and detailed information. Attach all supporting documents.

Follow-Up: Regularly follow up on your claim's status. Be proactive and maintain records of your communication. Most claims should be filed within 20 days of the incident, with supporting documentation provided within 90 days.