Lost Luggage and Other Travel Nightmares: How Baggage Insurance Can Save Your Vacation

How Does Travel Baggage Insurance Work?

Few things kill the excitement of a trip faster than showing up at your destination without your stuff. Whether your luggage takes a detour to another city, gets stolen on the way to your hotel or disappears while in the care of your airline, this kind of mishap can absolutely derail your travel plans.

That’s where baggage insurance comes into play. This type of insurance protects you when your bags are lost, delayed, damaged or stolen during a trip.

Baggage insurance is typically included in comprehensive travel insurance plans, which cover the biggest travel concerns people have. This means you can buy baggage insurance alongside coverage for trip cancellations and interruptions, emergency medical expenses, travel delays, missed connections and more. Coverage for baggage typically begins at the start of a trip, and claims usually require documentation (e.g. receipts, police reports and other proof of loss) for processing.

Will Airlines Cover My Baggage?

While airlines are legally required to reimburse travelers for lost and damaged baggage, payouts are limited and may be insufficient. The U.S. Department of Transportation says the limit for lost or damaged luggage is $4,700 per passenger for domestic flights and approximately $2,175 per passenger for international itineraries (varies and is based on Montreal Convention or Warsaw Convention agreements).

Those figures might sound generous, but remember that airlines are not in the business of giving out money they don’t have to. These huge corporations may try to avoid covering the full value of your luggage and belongings, and they can make the claims process more complicated than it needs to be.

Baggage insurance helps fill in the gaps while providing specific services, coverage amounts and help when you need it most. And remember, travel luggage insurance is typically bundled within a comprehensive travel insurance plan that offers essential coverages you need anyway.

When To Buy Baggage Insurance

You should purchase a travel insurance plan that includes travel baggage insurance for every trip you take. However, some situations necessitate this coverage more than others.

Make sure to have luggage insurance when:

• You’re flying with pricey sports equipment, including skis, golf clubs and more.
• Your luggage is packed with high-value items like designer clothing, cameras and other electronics.
• You have a complex international itinerary with multiple connections, which means there are more chances for your luggage to be lost.
• You’re traveling to a remote destination where replacing your belongings will be tricky and expensive.
• You’re leaving for a cruise, so lost baggage could mean spending your entire vacation without your stuff.

What Does Baggage Insurance Cover?

Baggage travel insurance is typically divided into a few different categories — coverage for baggage loss, baggage delay insurance, sports equipment loss insurance and coverage for stolen or damaged personal items. Note that baggage insurance specifics vary by provider and by plan, so you’ll want to compare policies side-by-side to ensure you’re getting the coverage you need.

Baggage Loss

Baggage Loss insurance covers luggage that is permanently lost, as well as stolen luggage. Coverage also applies to personal items inside baggage, which may include clothing, shoes, toiletries and more.

Most Baggage Loss coverage reimburses you for the actual cash value of the items you never recovered. For example, you may qualify for anywhere from $500 to $3,000 per person in baggage loss coverage, with the inclusion of per-item limits of $50 to $300 or more.. Note that you may be required to file a police or incident report when you file a claim.

Stolen or Damaged Personal Items

You can also get insurance for stolen or damaged personal items, which can include nearly anything you own and decide to travel with. Common items you can get reimbursed for include clothing, jewelry, electronics, cameras, computers and more.

Some policies will even reimburse administrative fees you’re charged to get travel documents like a passport or visa reissued if these items are stolen during a trip. Just remember that coverage can vary for different types of items, and so can policy limits and per item coverage amounts.

Baggage & Personal Items Loss coverage is typically included within a Baggage Loss plan, meaning you don’t have to purchase this protection separately.

Baggage Delay

Baggage Delay coverage reimburses you for essential items you have to purchase when your luggage is delayed for a specific length of time, usually 6 to 12 hours or longer. This coverage can pay for clothing you have to buy while you wait on your bags, essential toiletries (e.g. toothbrush and face wash), charging cords for your electronics and more.

Sports Equipment Loss

Sports Equipment Loss coverage reimburses you when your sports equipment is lost, stolen or damaged while in the care of a common carrier. If your golf clubs, surfboard or cycling equipment never arrive at your destination, for example, you could get reimbursement for the amount you originally paid. The same is true if your pricey sports equipment is damaged beyond repair while in transit.

This coverage can be offered separately from traditional Baggage Loss coverage, or it can be included within a plan’s Baggage & Personal Item Loss coverage.

You can also get travel insurance that comes with Sports Equipment Delay coverage. This protection covers the cost of renting sports equipment while you wait for your own items to arrive.

What Is Not Covered By Baggage Insurance?

Every travel insurance company has its own list of exclusions, so you’ll want to read over the fine print for plans you’re considering ahead of time.

Common items excluded by baggage travel insurance include:

• Animals
• Cash
• Collectibles (e.g. coins, stamps, etc.)
• Drones
• Fragile items (e.g. glass items, artwork, etc.
• Perfumes
• Perishables (e.g. food and drinks)

Also be aware that more expensive items can have individual coverage limits that apply. For example, travel insurance can limit coverage for jewelry, watches and precious stones. Other items that may be subject to individual coverage limits include decorative or personal articles made of silver, gold or platinum, watches and furs or articles trimmed with fur.

Electronics are one of the most common items that have individual coverage limits as well, which means you’ll want to choose travel insurance carefully if you travel with cameras, camera equipment, computers or gaming consoles.

Understanding Baggage Reimbursement Caps and Limits

Before you rely on Baggage Insurance, it’s crucial to understand the policy caps and limits that apply. Note that caps for some coverage can apply per item, per person and per day.

For example, it’s common to get anywhere from $500 to $2,500 in Baggage and Personal Effects coverage with a per item limit of $250. You may also find that high-value items are subject to special limitations, thus they qualify for a $500 to $2,000 maximum limit combined. You may also get Baggage Delay coverage that comes with reimbursement of up to $100 per day with a maximum coverage limit of $500.

These policy caps and limits are just estimates, but they show how typical policies may choose to cover your luggage and personal items.

How Much Baggage Insurance Do I Need?

To get an idea of your baggage insurance needs, take a few minutes to estimate costs for replacing your luggage and belongings if they disappeared. This includes not only the cost of your luggage itself, but also clothing, makeup, toiletries, electronics and personal items you plan to bring on a trip.

When shopping for coverage, make sure to pay attention to both per-item limits and total reimbursement limits. Remember that some policies will cap limits on specific items that cost more than average. If you have a $2,000 camera, for example, your policy might only cover $1,000 unless you pay for additional protection. Total reimbursement limits are important to understand as well since this is the maximum amount an insurer will pay for all lost or damaged items combined.

If you plan to travel with pricey gear, jewelry or designer clothing, you should know that some insurers offer add-on coverage you can buy for these items. This additional coverage can help you get peace of mind without overpaying for coverage you don’t need.

How Much Does Baggage Insurance Cost?

Baggage insurance is included within most travel insurance plans, whether you buy a comprehensive plan or a travel medical insurance plan. This means it is not a benefit that you need to pay extra for (nor is it a benefit you can remove to save money).

In general, a comprehensive travel insurance plan costs between 4% and 10% of your total trip cost. In 2025, the average cost of a comprehensive policy is about $400. Travel medical insurance plans are far less expensive, at an average cost of roughly $90.

How Do I Get Baggage Insurance?

Most people get baggage insurance through a comprehensive travel insurance policy. Common ways to secure this coverage include:

• Comparison sites: Use Squaremouth to compare travel insurance policies and costs across a range of providers including Generali, IMG, Tin Leg, Travelex, and more. Using a comparison site is best since you can browse and compare multiple coverage options all in one place.
• Directly from insurers: You can purchase travel insurance directly from the companies that provide it, and most make it easy to get a free quote for coverage online.
• Airlines: Some airlines offer travel insurance with coverage for baggage when you purchase a flight, but plans tend to be limited with no customization options.
• Credit cards: Some premium credit cards offer travel insurance with coverage for baggage, but limits tend to be insufficient for most travelers.

Is Baggage Insurance Worth It?

While lost or stolen luggage is a relatively rare occurrence when you consider the millions of people who travel each year, you might be surprised at how often baggage disappears — especially at certain airports. Recent research from Arka showed that Miami International Airport (MIA) has a bad reputation for losing bags in particular, with the most lost and found searches per million flights at 306 in total. Other airports that lose more bags than usual include Chicago O’Hare (ORD) and Singapore Changi Airport (SIN), to name a few.

Considering baggage insurance is included in most travel insurance plans — and that comprehensive travel insurance adds just 4% to 10% on average to your trip cost — it’s easy to see how the investment is worth it. This is especially true for complex trips with multiple layovers around the world, cruises in general and for travel to far flung destinations where lost luggage could wreak havoc on your plans.