Recovery for baggage theft

Recovery for baggage theft
AskEd & AnswerEd
by Ed Perkins - June 21, 2007

You arrive at the airport for the beginning of your vacation, claim
your checked baggage, take a quick look, and discover that something
you packed is missing. It doesn't happen all the time, obviously, but
it happens often enough to be a real hassle. It's even more of a
hassle if the airline refuses to reimburse you for the loss, as was
the case for a reader who recently lost a laptop computer that way.

Although you can't ever guarantee a hassle-free trip, you can take
some steps to minimize either the chances or financial risks of
baggage theft or loss when you fly.
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Airline responsibility

On a domestic trip, airlines are liable for up to $3,000, per
passenger, per trip, for loss of or damage to your checked baggage or
items packed in that baggage. Limits on some international trips are
sharply lower-as low as about $650 per bag or $1,500 per passenger,
per trip.

Moreover, airline liability comes with some significant caveats:

* The amount you can recover is based on depreciated, not
replacement value.
* Airlines say they won't cover damage or loss due to security
screening-and you can't always tell who was responsible for any given
problem.
* Airlines won't provide any recovery at all for the sorts of
items most likely to be stolen or damaged. Here, for example, is what
American excludes: "Photographic equipment, computers, VCRs, and any
other electronic equipment including software or components; jewelry,
cash, documents, furs, works of art, or other similar valuable items,
including but not limited to antiques, books, china, fragile items,
liquids, medicines, perishable items, securities, negotiable papers,
or silverware." Other airlines use similar lists.

Most airlines will increase the maximum baggage liability if you pay
extra. Even then, however, those lines continue to exclude the
specified valuable items.
Travel insurance coverage

Although most bundled travel insurance policies include some coverage
for lost/damaged baggage, even a separate travel insurance policy
doesn't protect you against the sort of loss our reader experienced:

* Limits on most policies are $1,000 per person, with a maximum
value of $300 per article or item.
* Often, it's secondary, meaning that it covers only what you
can't first recover from the airline.

Travel insurance does cover some items the airlines exclude, but not
all of them. CSA Travel Protection and Travelex are reasonably
representative of the industry. They:

* Cover a combined maximum of $600 for jewelry, watches, articles
consisting in whole or in part of silver, gold or platinum, articles
trimmed with fur, cameras and their accessories, and related
equipment.
* Exclude telephones, computer hardware and software, plus
professional or occupational equipment or property, whether or not
electronic.

Other insurance coverage

Clearly, if you want to insure against loss or damage to a laptop
computer, expensive camera, jewelry, or other items that are valuable
to you-and to potential thieves-you have to go beyond the base airline
liability and even ordinary travel insurance:

* Your regular household insurance policy may cover many personal
articles, even when you're traveling and away from home. However, it
may also exclude some high-value or extra risky items.
* If you regularly travel with an expensive camera, laptop, or
other electronic equipment, consider getting a year-round overall
insurance policy for it. Many "factory warranties," overpriced though
they may be, could solve your problem. Or you might be better off with
a special policy for those items-check with your property or household
insurance agent.

Who's responsible?

Whenever you note damage to or loss of checked baggage or anything
packed in your baggage, the airline that delivers you to the
destination where you first claim your bags is responsible for
tackling your claim. If you used two or more airlines on a connecting
ticket, it's not up to you to try to figure out which line is
responsible-the airlines sort it out among themselves.

Most lines specify that you should file your initial report within 24
hours of the time you reclaim your baggage. In general, the best time
and place is at the arrival airport, but if you don't notice the loss
or damage until you arrive at home or a hotel, call the airline as
soon as possible. Either way, you can expect a delay up to 60 days
before the airline responds.

If you take out travel insurance, file a claim with the insurance
carrier as soon as you can. With secondary coverage, expect the
insurance company to wait until you settle with the airline before
reaching their own settlement.
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What to do

Given these facts, some basic rules about taking valuable items on an
air trip become clear:

* If you don't really need it, leave it home. This rule applies
especially to jewelry, precious metals, and such.
* Never-repeat, never-pack valuable and thief-tempting items such
as expensive cameras, computers, and phones in your checked baggage.
If you need them, take them in your carry-on bag.
* Arrange special insurance coverage for valuable items you
regularly take with you on trips-especially laptops.
* If you have to get valuable and irreplaceable items such as
antiques, heirlooms, and papers from one point to another, ship them
separately by express delivery, heavily insured.

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