Is my personal property covered by travel insurance?

Travel presents lots of opportunities for personal property to be damaged. Whether it is property that has come abroad with you or items that are left at home, there is a heightened risk of either type being damaged or stolen.

So where exactly does your travel insurance policy leave you with regard to property coverage? Read on to find out.

Baggage loss and delay

This is usually where travel insurance and personal property tend to intersect. Baggage loss and baggage delay coverages are two of the most common travel insurance features.

The two of them complement each other to ensure that a traveler will never have to worry about paying out of pocket for property that is inadvertently harmed or lost (it's a different story if the traveler is responsible for the loss).

Certain requirements will need to be met for policyholders to claim for either of these coverages. For delays, they will likely need to produce proof that the delay was sufficient enough to merit extra supplies in the interim. Full-on baggage loss will probably call for a police report or some sort of official documentation.

Home insurance to the rescue

A lot of people who are new to the world of insurance—and even some who have been dealing with it for a while—have no idea that the personal property they bring with them while traveling could actually be covered under their home insurance. This under-the-radar inclusion is in fact a staple of most home insurance policies.

Keep in mind that the same limits and exclusions that apply to items regularly will also apply when you are traveling with you. So for items like jewellery, artwork, and collectibles, the policyholder may need to have them either appraised in advance or covered with an additional rider in order to make claims on them.

Then is baggage coverage even necessary?

After reading the previous blurb, anyone following along closely may now be wondering if baggage loss is even a necessary component of travel insurance in the first place. After all, if home insurance is equally capable of replacing those items, then wouldn't it be redundant in a travel insurance policy?

Not exactly. Even if an item can theoretically fall under the blanket of home insurance coverage, it may not make sense to go down that route when replacing it. That's because any claim(s) that is made through a home policy runs the risk of prompting an increase on the policy's premium going forward, not to mention high deductible fees. Whatever theoretical gain one has by foregoing baggage loss coverage could be completely outweighed by the costs of an increased premium.