Need to know
- Check your policy before you go – not all policies include cover for lost baggage
- Report the loss promptly – you'll need evidence that you reported the loss for your insurance claim
- It might be many weeks before you get compensation for lost luggage
Have you ever found yourself standing at a baggage carousel, watching as all the other passengers claim their luggage and set off on the next part of their journey, all the while growing more anxious as your bag fails to appear? If you have, you'll know the sinking feeling that accompanies the realisation that your bags won't be joining you on your trip.
While it won't make your luggage magically appear, knowing what you should do if this happens to you can help you feel prepared for the worst.
Before you go
If the thought of losing your luggage makes you break out in a cold sweat, but travel insurance gives you some peace of mind, consider this: basic policies won't generally cover baggage at all.
"To start with, make sure you get a policy that has some cover," says CHOICE travel insurance expert Jodi Bird. "Then, you want to check that the overall limit for baggage is enough to cover the items you have packed in your suitcase, and that the sub-item limits are enough."
Check that the overall limit for baggage is enough to cover the items you have packed in your suitcase
CHOICE insurance expert Jodi Bird
Sub-item limits often apply to items such as prescribed medications, cameras and other electronic equipment. For example, if you're taking a laptop with you, make sure the policy's laptop limit is high enough to cover your device. You can find this information in the product disclosure statement (PDS) issued with the policy, or you can also find this information in the CHOICE travel insurance reviews.
It's also helpful to have evidence that you own the things you are travelling with. "Receipts are good, but if you don't have them, take photos of your belongings before you leave," says Jodi.
Is your luggage lost or just delayed?
Sometimes your policy or the airline will provide coverage to help you buy essentials if your luggage is simply delayed rather than lost, but there are restrictions.
If you find your luggage hasn't made it with you to your holiday destination, but your carrier assures you it's on its way and will be with you in under 12 hours, you probably won't be covered. However, if it's longer than that, you may be covered for items like clothing and toiletries that you'll need to get you through until your bags catch up with you.
You generally don't get a benefit for luggage that is delayed on your trip home
And the point in your trip when the luggage is delayed does make a difference.
"If you arrive in Bali but your luggage doesn't, the delayed luggage benefit in your travel insurance might cover essential items, but you don't generally get that benefit for luggage that is delayed on your trip home," warns Jodi.
Be aware of insurance exclusions. For example, items left unattended at a cafe, even if it's just for a few minutes, may not be covered if they are stolen.
Be aware of exclusions
Of course, your belongings going missing isn't always an accident – insurance can also help if something is stolen, but you need to be aware of exclusions. Just because you've made it out of the airport with all your luggage doesn't mean you can let your guard down, since many policies have exclusions that can create frustration for the unwary traveller should something go missing while you're on holiday.
Don't leave items unattended
"Belongings left unattended is the biggest baggage catch," says Jodi.
"For example, items left by the side of the pool when you go for a swim, or hand luggage left on a chair while you get up to buy a coffee, will be considered 'unattended'. Which means the insurer might not pay out for those items if they get stolen while your back is turned."
The insurer might not pay out for items stolen while your back is turned
CHOICE insurance expert Jodi Bird
Claims on stolen valuables, like phones, laptops or jewellery, might also be denied if they are in your checked luggage rather than your carry-on, or if you leave them in a vehicle (even if it's locked). They also might not be covered if they're stolen from a hotel room if you didn't use a provided safe, or you left doors or windows unlocked. Conditions will vary between policies, so read the PDS carefully.
How long will you wait for compensation if your luggage is lost?
Bear in mind that it could be weeks or even months until you get your compensation for lost baggage. Airlines won't generally declare your bag as lost until after 21 days, at which point you'll be able to claim compensation. For many, that will mean your holiday has come and gone while you wait.
Airlines won't generally declare your bag as lost until after 21 days, at which point you'll be able to claim compensation
Your airline should offer compensation if they've lost your bags, but how much that is depends on whether you're travelling domestically or internationally. If what they pay you doesn't cover the full value of the lost items, you could potentially claim the shortfall from your insurer, but it will depend on your policy.
"Insurers will generally only pay out on lost luggage after a carrier deems the luggage irrecoverable. And they'll only compensate you for what the carrier hasn't already. So the insurer really wants to be sure you won't get your items returned or compensated for by anyone else before they'll pay you," says Jodi.
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