Lost Luggage and Airline Baggage Liability

If you think that airlines are completely liable for any lost luggage, think again. Although airlines are technically liable for luggage that may be lost in their care, there is an agreement that will prevent you from receiving a large compensation.  Many travelers have never heard of this agreement by name, but they have probably experienced it firsthand.  The Warsaw Convention regards international travel and states that your airline is only responsible to pay ‘approximately’ $9.07 per pound, and only up to $640 per bag for checked luggage, and only $400 per customer for unchecked baggage. Domestic flights have a cap at $3,300 per customer, and although this number may seem fair, it is very rare that an airline will hand over this kind of money. There are also limitations as to what items get refunded.

For those of you concerned about the valuables in your luggage, there is another option hidden away in your airline’s website and luggage information.  Every airline is required to offer excess valuation, although you probably haven’t heard it very often. If you purchase excess valuation you are able to declare up to $5,000 in the case of it being misplaced or stolen.  You can purchase excess valuation when you check in for $1 per $100 of your declared value.  That’s only $50 if you choose to insure the full amount ($5,000).  You also have to properly describe the item and make sure that it is properly packaged and undamaged.

For more insurance options, go to Types of Travel Insurance Coverage.

Not sure if you need travel insurance?  Check out the Reasons To Buy Travel Insurance.