Luggage Insurance: When baggage is a good thing.
Luggage insurance can protect loss or theft of your baggage, personal belongings and more.
Key takeaways
- Luggage insurance can reimburse you if your stuff gets stolen or lost on holiday.
- There are a tonne of exceptions, so you'll need to check everything is covered.
- Typically it's a feature of a larger travel policy, but can be found standalone.
What is luggage insurance?
Luggage cover is a specific section of your travel insurance policy - it's designed to kick in if your belongings are accidentally lost, stolen or damaged during your trip. It's also known as baggage insurance, personal belongings or personal effects cover.
While it sounds like luggage insurance just applies to what's in your suitcase, most of the belongings you take on the trip will also be included. So if you have your wallet pickpocketed while sightseeing in Rome, or you accidentally crack the lens of your new camera, you should be able to make a claim.
Standalone luggage insurance
Some companies used to offer luggage-only travel insurance, but it's not that common now. Instead, most cheaper travel insurance policies will cover luggage insurance as well as for things like medical expenses and trip cancellations.
Most insurers also offer a benefit for delayed baggage under their luggage insurance - so if your airline accidentally sends your stuff to the wrong city, you should be able to get some cash back.
What's covered in luggage insurance?
Luggage and personal effects cover generally will pay out if your personal belongings are lost, damaged or stolen while you're on holiday. It will typically cost the price to repair, replace, or the purchase price minus depreciation, whichever is lowest. Also, each policy will have a maximum claim amount - $3,000 for example.
As to what can be covered, it's not just your luggage! While every insurer is different, here are some of the things that are often covered:
- Luggage and bags
- Clothing and jewellery
- Photography or video gear (not just cameras)
- Personal electronics, phone or laptops
What isn't included in luggage insurance?
First off, luggage and personal effects cover won't pay out if you're reckless with your stuff. This includes not locking your hotel or car doors, leaving your stuff with strangers, leaving your stuff in a car overnight, or leaving it on the train, in a rental car or hotel. You'll need to have taken reasonable means to look after your items.
There are also often higher care requirements for expensive personal items like laptops, cameras and jewellery. This might include you having to use a hotel safe if one is available, as well as not putting that stuff in a cargo hold of a ship, plane or train, unless it's explicitly required by your airline or carrier.
There are also some specific items that won't be covered, which might include:
- Bicycles and other sports or water gear
- Business samples or items intended for trade
- Passports or travel documents
- Cash, bank notes or currency notes
- Precious stones that aren't set in wearable jewellery
These exclusions vary by policy, so read the fine print. Some excluded items might be covered with an add-on to your policy - ask your insurer if that's something that's important to you.
Luggage loss vs luggage delay
Slightly different to lost or stolen luggage cover is cover for delayed luggage. This is another benefit that's pretty common in basic travel insurance policies. The idea is that if your luggage is delayed, but not lost, you'll be able to receive a benefit to cover the cost of buying extra stuff that you need. For example, extra clothes, toiletries or covered medicines you need.
Most insurers will have minimum delay times before they'll pay out, as well as maximum benefits. Check the details of your policy before you travel to be sure what you're covered for.
What if I'm travelling with a high-value item?
Standard insurance policies set a limit to the amount they will pay out per item - but that doesn't mean you're out of options. Usually, you can add an item to your policy, essentially customising it for you. The policy will probably be more expensive, but could be worth it in the long run.
Luggage insurance from Australian travel insurers
| Brand | Luggage & personal effects | Delayed luggage | Phone sublimit | Laptop sublimit |
|---|---|---|---|---|
 | $15,000 | $1,100 | $1,500 | $4,000 |
 | $10,000 | $1,000 | $2,000 | $4,000 |
 | $7,500 | $250 | $1,000 | $3,000 |
 | $15,000 | $750 | $1,500 | $3,000 |
 | $5,000 | $350 | $750 | $750 |
 | $7,500 | $500 | $1,000 | $1,000 |
 | $15,000 | $750 | $3,000 | $3,000 |
 | $7,500 | $400 | $3,000 | $3,000 |
 | $15,000 | $750 | $1,000 | $3,000 |
 | $25,000 | $1,500 | $2,500 | $5,000 |
 | $25,000 | $1,000 | $1,500 | $3,000 |
 | $12,000 | $500 | $1,000 | $4,000 |
 | $25,000 | $1,500 | $2,500 | $5,000 |
 | $15,000 | $1,600 | $2,000 | $2,500 |
 | $10,000 | $300 | ||
 | $12,000 | $1,100 | $1,000 | $3,000 |
 | $15,000 | $250 | $1,000 | $3,000 |
 | $15,000 | $750 | $1,000 | $3,000 |
 | $12,000 | $500 | $700 | $4,000 |
Note: This information was last updated September 2024
Frequently Asked Questions
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I am an Australian citizen but currently reside in China (Shanghai). I need to put in place luggage and cancellation insurance for my families luggage specifically for a return trip from Shanghai to Canada return to Shanghai. Can you please advise if there is a policy that is suitable for my families situation?
Hi Sue,
Thank you for getting in touch with Finder.
There are several cover options available for Australian citizens living and working overseas. See our list of travel insurance for Australian expats to compare your options for your family.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
I am traveling back to the US on Kuwait Air and must pack my camera gear in my checked luggage. I need enhanced baggage coverage to inure my equipment in the amount of $7,500. I have already purchased a standard travel insurance policy which has limited baggage insurance.
Hi Neil,
Thanks for reaching out to us about your concern. I hope you are having a great day today.
You are viewing the right page for a list of options for luggage only insurance. You may discuss this option with each insurer so you would be able to compare and eventually decide on which option would suit your needs.
Moreover, most travel insurance polices are basic by nature but if you pay extra premiums, there are insurers that will provide additional cover. If you want additional cover, kindly get in touch about it with the insurer before you travel or even before purchasing the policy.
Please take time to review the relevant details of information as well as the Terms & Conditions of each insurer before deciding on the policy that you would purchase.
I hope this helps.
Cheers,
Judith
my son is traveling to Iceland to record
Whales sounds
He have full medical insurance and want
to insure his record equipment please.
Hi David,
It’s nice to hear about your son’s adventures. :)
Regarding your question, we have a guide on how you can protect expensive items during travel. Please go to this guide and you’ll also find a form that you can fill out to compare possible insurance brands that can give your son this type of cover.
While looking for insurers, please make sure you read the terms and conditions of the policy to learn more and know if it is the right policy for you or not.
I hope this helps.
Cheers,
Danielle