Luggage Insurance: Why do you need it?

In most cases, any luggage or items lost or delayed by the airline and other transportation systems should be their responsibility. However, troubles may arise if your luggage takes longer than the standard 12 hours to arrive. This is where travel and luggage insurance can help.

What situations are covered under Luggage Insurance?

Most NZ providers cover your luggage for the following:

• Accidental Damage - Accidental damages to your luggage and personal items.
• Theft - In case your items are stolen, your travel insurance provider should pay for the cost of replacement or repair of the item.
• Airline Troubles - If your baggage is lost by the airline or any transport provider, your insurer will cover the costs of replacing the items.
• Emergency Expenses - In case your luggage arrives late, a small allowance is provided to help you with emergency supplies.
• Cancellations - Some insurers will cover your cancellation expenses, including any accommodations pre-booked beforehand.

What items are covered under this feature?

Baggage

If your bags and items got stuck at the airport for more than 12 hours, most travel insurance providers can provide some money for purchasing essential items until your luggage arrives. You just need to provide your delayed baggage report and all receipts for incurred expenses.

Medication

Medication is very important and it’s something you don’t really want to risk while you’re enjoying a relaxing vacation. Luggage insurance can cover this but note that your medication must be prescribed by a registered practitioner for it to be covered.

Personal items

Luggage insurance can help you with any lost, damaged, or stolen personal items. Items like clothing, jewellery and watches, and electronics like laptops, computers, tablets, cameras, and their accessories are covered, with most providers providing replacement based on the original purchase price.

What should I look for in a Policy

• Policy Limits - Look at the maximum benefit that your policy can offer. Depending on the cost of your items, you might want to look at a higher policy.
• Sub-limits - There’s also additional sub-limits that may limit the amount paid out for certain items in your policy. For example, regardless of your maximum limit, there may be a cap that your insurer will pay out for certain items like laptops, cameras, and other expensive items.
• Exclusions - Of course, you need to read the exclusions of your policies. It gives you an idea on which items aren’t covered and your responsibilities when it comes to securing your items.
• When to take out cover - It’s recommended to get your travel and luggage insurance before your trip for benefits like cancel cover.