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Baggage insurance is a form of travel insurance that provides financial protection against lost, damaged, or stolen checked-in or carry-on baggage. The insurer agrees to reimburse or pay up to the maximum amount in the policy to the owner whose luggage had been lost, damaged, or stolen luggage and personal effects during the course of travel.
Baggage insurance offers additional protection to a traveler whose baggage and personal effects may be lost, stolen or destroyed while traveling. It offers replacement costs through reimbursement of a certain amount indicated in the policy and may also reimburse the owner for expenses arising from delayed baggage delivery. In essence, it offers a solution to the concerns of travelers who have had to wait for weeks for airline companies to settle their claims, especially considering since most airplanes place strict limits on their liability
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