The iTravelInsured July newsletter discussed baggage & personal items loss.
To assist you in providing accurate information to your clients, here are some of the most common misconceptions travelers have regarding travel insurance.
For those that have a renter’s or homeowner’s insurance policy, there is coverage for personal property anywhere in the world for 10% of the amount of listed contents (unscheduled personal property) coverage. For example, if you have a $20,000 personal property/contents cover, you can apply 10% or $2,000 to a loss that occurs anywhere in the world due to a covered peril (such as theft). However, most of these policies have deductibles of $500 or $1,000. For this reason, travel insurance coverage carries a benefit amount that is designed to fill the gap in coverage left by the deductible.
Many travel insurance policies offer the benefit of personal items and baggage lost. This coverage provides reimbursement for lost, stolen or damaged baggage or personal items. It usually covers the entire trip, not just the flights. Most policies set an overal dollar limit, as well as a per item limit. If there have items valued over $1000 it is best to have these items “scheduled” on your home-owners policy. There may also be specific items excluded from baggage and personal items loss, such as computers, telephones, animals and credit cards. Always refer to the certificates of insurance for details.