Horror stories of lost or damaged baggage can strike fear into the heart of any traveller. Fortunately the vast majority of checked bags arrive safely. That may of little comfort if you are one of the unlucky ones!

Airline liability for lost or damage baggage is limited by the 1929 Warsaw Convention which provides for compensation based on weight! (My partner recently had an expensive fly-fishing rod go missing on a European flight. Uh-oh).

So does that mean you should rush right out an buy baggage insurance? Maybe, but first see if you are covered already. Many homeowners' policies offer coverage for lost or damaged baggage Also the collision insurance on your car rental may include some coverage.

If you like to travel with a lot of electronic gadgets like smartphones, DVD players, portable music players etc. or you're carrying diving gear, climbing gear, cycling gear or fly fishing gear, baggage insurance would certainly be worth the price, especially if you combine it with a good travel insurance policy.

Travel Guard, is an industry leader in providing travel insurance. The company covers over 6 million travellers worldwide each year offering coverage for vacation and trip cancellation, travel interruptions and delays, emergency medical and health expenses, lost baggage and more. Click here for a free quote!

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