Travelers thinking of insuring a brand new laptop or an expensive engagement ring with travel insurance should first understand the limitations of most policies. As part of a package of benefits, many travel insurance policies offer coverage for the loss of baggage and personal items. These benefits may provide reimbursement, up to the amount scheduled on the policy, for lost, stolen, or damaged items.
Most policies set overall maximums as well as per item and specific items limits. For example, the John Hancock Gold plan offers a $2,500 policy limit for baggage and personal items loss. While the policy covers items up to $300, there is a combined maximum limit of $600 for specific items, including: jewelry, watches, cameras, camera-related equipment, articles consisting of silver, gold, or platinum, furs and fur-trimmed items, cell phones, computers, and other digital or electronic items.
Common items that are not covered may include: animals, automobiles, sunglasses, contact lenses, artificial teeth, hearing aids, medications, keys, money, credit cards, sporting equipment, travel tickets, and computer software.
Instead of relying on travel insurance to protect big-ticket items, Squaremouth suggests travelers schedule those items with renter’s or homeowner’s insurance policies. It is always recommended to review full details and exclusions prior to purchasing travel insurance.