Most Insurance Does Not Cover the Expensive Electronics in Your Checked Bags
With an electronics ban in place for most flights from the Middle East and North Africa, and the threat of a laptop ban hanging over our heads , there’s a good chance that you’ll need to check expensive electronics with your luggage on your upcoming flight. It’s a shame that there is nothing you can do to cover the loss or damage.
Whether you have to check your laptop or not, airlines are absolutely not responsible for any damage, theft or loss of items. This is stipulated in the carriage contracts of each major airline that you agree to every time you fly. For example, United , American Airlines and Delta are saying roughly the same thing: we will take responsibility, but we are not responsible for it. If something happens to your belongings during transit, you are screwed up.
To make matters worse, most insurance coverage will not cover your losses. Travel insurance is not a bad idea when you are traveling, but it is not perfect. Some travel insurance companies will cover loss or damage to items of luggage, and the costs covered can vary significantly, and not all plans cover electronics like laptops and cameras. Julie Loffredi, travel editor for InsureMyTrip , explains to the Los Angeles Times :
“While the policy may state that baggage is covered up to a certain amount, the amount of coverage will almost always have a limit on each item, a certain amount that they will cover for any one item … This will depend on the policy, but usually around $ 200 per article. “
If you’re traveling with a $ 1,500 laptop and a $ 1,000 camera, you only get a fraction of the cost back. In addition, Loffredi notes that travel insurance should be a last resort when trying to recover such losses.
Homeowner insurance, on the other hand, can help you, but it depends entirely on your policy. If your deductible is roughly $ 500 to $ 1,000 – as many people do – it won’t make much of an impact on your loss of one or two items while traveling. Also, your insurance policy can be paid in different ways. If you have “proof of replacement value” (which costs more money), you can get the amount you need to repair or replace an item without deducting depreciation. However, if you have an actual cash value policy, the value will be based on amortization. As you know, electronics depreciate very quickly, so getting the real cash value of a laptop that is only a few years old can be nearly zero. Susman Insurance Agency explains :
… if your computer is covered, it is probably only covered up to a limit, perhaps $ 1,500 … if you have not purchased proof of replacement cost, your claims handler will deduct the use and wear and tear of how many years ago you purchased the laptop, or Desktop. Assuming you bought a downsized MacBook Pro three years ago, your computer could currently be priced at $ 500 – not including software updates. But there is one more thing: you chose the $ 500 deductible deduction method when you first purchased your policy. You know so you can save money. So, your insurance company owes you $ 0.
Oh, and one more thing: your homeowner’s insurance policy may not cover items used for business purposes at all, or, at best, you limit yourself to a much smaller amount.
Apart from protecting your electronics and data as much as possible , there is n’t much you can do. If you are desperate for coverage, you may want to consider enforcing a “valuables policy” or “valuables”, which is commonly used to cover items such as antiques and jewelry. This is usually a replacement cost policy that covers everything if it is lost or stolen, but it can be costly. Plus, you need to take the extra time to fill out paperwork and all. It’s easy to forget about it when you’re preparing for a big trip.