Baggage Insurance

What Does Baggage Insurance Mean?

Baggage insurance is a type of travel insurance that offers financial protection against lost, damaged, or stolen checked-in or carry-on baggage. The insurer agrees to reimburse or pay up to the maximum amount specified in the policy to the owner of luggage or personal effects that are lost, damaged, or stolen during the course of travel.

Insuranceopedia Explains Baggage Insurance

Baggage insurance provides extra protection for travelers whose baggage and personal effects may be lost, stolen, or damaged while traveling. It offers reimbursement for replacement costs up to the amount specified in the policy and may also cover expenses related to delayed baggage delivery. Essentially, it offers a solution for travelers who have had to wait weeks for airline companies to settle their claims, especially since most airlines impose strict limits on their liability.

Before buying a separate policy, it’s worth checking what renters insurance covers, since many standard policies will reimburse stolen items even when the theft happens away from your residence. Travelers with expensive items like cameras or jewelry sometimes add a personal property floater to their homeowners or renters policy to extend protection to belongings while away from home, which can overlap with what a baggage policy provides.