Travel Insurance - Common Pitfalls When Claiming Lost and Stolen Goods

Many of us will take out holiday insurance when going on vacation but do you know what to do when something goes wrong? Finding out upfront can save a lot of heartache in the future. Review the following tips so that you can be ready.

Proof of ownership

Travel insurance companies will often refuse to pay for lost or stolen items unless that you can prove that they are yours. The best way is with the original receipt. We might keep receipts for the expensive items but who has a receipt for every item you are packing!

Now, travel insurance companies are not amoral and will cover you for most things like clothing, makeup, and luggage but without proof of brand or model you'll often only get a fraction of the cost to replace them.

Digital cameras are cheap and most people will be taking them on holidays. So you should take a photo of everything that you are taking. Get the brand and model where possible. Record all this in a spreadsheet as well. Scan all receipts, manuals, warranty cards, or tags. You can wait till you get home but I’d recommend emailing all the images, scans and spreadsheet to a free email site like gmail or hotmail so you can claim in a hurry for expensive items.

Replacement value

It has become the trend for motor vehicle or home and contents insurance to offer new goods in place of old goods. Often this is not how travel insurance works. You'll typically be offered the cost of your items after depreciation. Usually you would be able to afford a second hand item with the amount offered. Occasionally some second hand goods don't lose much value and you actually won't be able to buy a replacement one for anywhere near the reimbursement the travel insurance company gives you. You should consider making a complaint with the company if this is the case. Provide proof of the real market value (e.g. from classifieds, second hand shops, or ebay). If the travel insurance company still refuses to cover the real cost then you have recourse through an ombudsman.

Stolen items and police reports

Travel insurance companies will generally not just take your word for it when something is stolen. They want some sort of proof. This is generally best in the form of a police report but can be a statement from the airline, cruise ship, etc if it happened there.

Police reports can be difficult to obtain in some countries. You may be asked to pay a fee for this service. If the amount is small then pay it to avoid any extra hassle. If it is larger then you may want to consult your guidebook or the internet to see if this is normal. If not then your embassy or consulate should be able to help. There may be tourist police who are best to approach in regards to this.

If you have trouble speaking the local language and the police can't understand you then you could try an online translation service (e.g. babelfish) or by finding a local or fellow traveller who speaks English and take them along (consider giving them a tip).

Unattended baggage

A major area in which travel insurance will not cover you is when your luggage is left unattended. You may think this would rarely happen as you usually don't leave your bags in random places but unattended is usually described as being left in an unlocked location or with someone you aren't associated with. Common scenarios are left luggage at hotels or hostels, with doormen, or with tour companies.

Need help with Australian Travel Insurance? Go read up at Travel Insurance Reviews and check out the 1Cover Travel Insurance Review.