Losing our baggage on holiday is one of the biggest worries we have- be it at the airport during baggage collection or even once we are settled at the hotel. So, insurance against loss or theft of your valuables is very important if you know you’re taking items you wouldn’t want to lose or would be hard to replace.
There are a few terms and conditions to do with this kind of cover, however, to protect against fraud.
Most companies will cover you for loss or delay of baggage, and will compensate you very well for it, but very few will offer replacements of lost items- rather, they insure the value of the item at the time it was lost. So, a brand new ipod would be insured for more than one you’ve had for a few years. All the companies will tell you to take good care of your possessions, and loss due to carelessness will very rarely result in you getting everything back. If you leave the hotel door unlocked and all your jewellery laying out on the bed you probably won’t be eligible for compensation at all.
You also need to get a police report to show to the insurance company and if you can’t get one you must obtain one from a representative of your trip- if you don’t get a report it will damage your claim due to lack of proof.
In regards to cash, you can only be insured up to a certain amount, so it is recommended that you don’t carry much cash around with you all in one go on holiday and take out travellers cheques where possible- that way, if they are stolen they are basically useless to the thief and you can easily replace them without having lost any money. Most foreign banks will cash in travellers cheques for you, but some will not- so always check before hand.
Credit cards are slightly different and many will actually be covered under your contents insurance at home, but it’s worth checking what your insurance covers when you go away as everyone is different and it’s never safe to just assume.