Baggage insurance: making the right choice

Des my home insurance cover stolen baggage?

Yes, as long as you chose theft coverage when you took out your home insurance policy. This coverage, which is part of all risks contrats, often includes compensation in an amount superior to traditional baggage insurance—but it may be subject to certain limitations. Basic homeowner’s insurance, for example, usually includes coverage corresponding to 10% of the total amount for your movable property. So if your property is insured for $25,000, the maximum amount to which you’ll be entitled for stolen baggage is $2,500. Note that all other policy limitations apply as well. For instance, if you make a claim for stolen cash, the maximum reimbursement is $400. If you are the victim of a theft, you should expect to pay a deductible, and the claim will be entered in your record, just as if the theft had occurred in your home.

Will I have to pay a deductible if I choose baggage insurance?

If you have purchased separate baggage insurance, there will be no deductible to pay for lost or stolen baggage. You will probably end up paying in another way, though, because the coverage amounts are lower, and some categories of items are subject to limitations.

Is all my property covered against loss and theft?

Regardless of whether you are protected under the theft coverage clause of your home insurance or baggage insurance, all property travelling with you will be covered, whatever its location (e.g., car, hotel). To avoid any unpleasant surprises, however, carefully read your insurance policy before you leave, to learn what exclusions there may be, and the maximum coverage amount applicable per individual item. For example, the coverage amount for electronic gear may be less than its actual value. Although even if the total coverage amount of your baggage insurance is $1,500, in case of lost of your $800 digital camera, you should be reimbursed for a maximum of $300. If you are the victim of pickpocketing, burglary or vandalism, make sure to notify the local police and obtain a copy of the police report, or other written declaration, as proof of loss for when you make a claim. This is essential in the case of baggage insurance and highly recommended if you are relying on your home insurance.

Are goods that I purchase while travelling covered as well?

Only baggage insurance covers items that you buy for yourself while travelling. If you plan to purchase a valuable item during your trip abroad, take out baggage insurance with sufficient coverage before you leave (you can’t change coverage amounts after the fact).

I’m going on a bike trip. Do I need to add extra coverage?

Most baggage insurance companies cover bicycles as long as they are registered with a carrier (e.g., airline). Here again, though, keep in mind the maximum coverage amount per individual item when you take out your baggage insurance. And the same goes for home insurance; most insurers set the maximum reimbursement amount at around $2,000 for this type of item. So if you have a high-end bike, it’s probably best to purchase extra coverage. This same rule applies to any item of very valuable sports equipment you travel with.

Is baggage insurance included with my credit card’s travel insurance or with my group insurance?

Very often, coverage for lost baggage—like trip cancellation coverage—is not included with credit card insurance or group insurance. Don’t take for granted that you are totally protected with these types of insurance. Always take the time before you leave to doublecheck what your insurance covers. For guidance, read this article on your credit card's travel insurance for our list of items to check.