Does travel insurance cover lost luggage? The per-item limits are the whole story

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The verdict

1. Yes — but the number that pays is the per-item limit, not the headline. As of September 2026, across the certificates we read baggage benefits run from $500 to $2,500 while per-item limits run from $100 to $500. If your bag's value is concentrated in two or three objects, the headline is decoration. Compare live quotes on Squaremouth and sort by baggage limit rather than trusting a summary row.
2. The airline owes you first, and it owes more than most policies do. Federal rules require any limit on a US domestic carrier's baggage liability to be at least $4,700 per passenger. Travel insurance sits on top of that, not instead of it.
3. If you travel with a camera, read the "Items Subject to Special Limitations" clause before anything else. It bundles jewellery, watches, precious metals, furs and camera gear into one combined cap — $250 on one plan we read, $500 on another, $1,000 on a third.

Baggage cover is the benefit travelers assume they understand and the one that most often disappoints. Every claim runs through three numbers: the overall benefit, the per-article limit, and a special-limitations cap that quietly governs everything expensive. Here is what five current plan documents actually say.

The five schedules, read cold

As of September 2026:

Tin Leg Gold's schedule reads, in full: "Baggage / Personal Effects $500 Per Article: $100, Combined Maximum Limit For Described Property: $250." Squaremouth's own provider page lists "Low baggage coverage limits on most plans" among the brand's drawbacks — a rare admission from a seller about its own house brand, and an accurate one. The full read is in our Tin Leg Gold review.

The clause that decides your claim

Every one of these policies carries a list of property it treats as a single, capped loss. The lists are almost identical; the caps are not.

Tin Leg Gold applies its $250 combined limit to "jewelry, watches, articles consisting in whole or in part of silver, gold or platinum, furs" and then "sports equipment, radios, cameras, camcorders and their accessories and related equipment and other electronic items."

Seven Corners Choice caps the same family at $1,000 maximum combined: "jewelry, precious or semi-precious gems, decorative or personal articles consisting in whole or in part of silver, gold, or platinum, watches."

Travelex Ultimate is the strictest on this clause despite the friendliest per-item line. Its policy says it "will not pay more than $500 [$1,500 with optional upgrade] (or the Baggage and Personal Effects Benefit limit, if less)" on losses to jewelry and the rest of the list — and then states plainly that "the loss of such items will be considered a one total combined loss." Travelex does sell a way out: an additional baggage upgrade "Available (additional $3,000)" with a "Per item limit: $1,500" and an "Electronic and professional equipment limit: $2,000."

So a stolen camera bag is worth $250 on Tin Leg Gold, $500 on Travelex Ultimate without the upgrade, and up to $1,000 on Seven Corners Choice — regardless of what the headline benefit says. We set two of those plans against each other in Travelex Ultimate vs Seven Corners Choice, and the Choice document gets a full read in our Seven Corners Trip Protection Choice review.

Squaremouth's own benefit page says the quiet part: "Most travel insurance policies don't offer sufficient loss coverage for expensive items," and advises finding another source of protection for belongings worth more than the policy's limits, which it puts at "usually $1,000 or less."

You get depreciated value, not a new one

Tin Leg Gold defines "Actual Cash Value" means purchase price less depreciation and pays "the lesser of the following: (a) Actual Cash Value, as determined by Us, at time of loss, theft or damage to Baggage and personal effects; or (b) the cost of repair or replacement." Squaremouth confirms the market norm: "Most plans will reimburse you the actual cash value of the lost or damaged items at the time of the incident."

Documentation is not optional. Tin Leg Gold requires that "Original receipts and a police report from the local jurisdiction (in the event of theft) must be provided for reimbursement." Travelex requires that "Items over $250 must be accompanied by original receipts."

The airline's liability comes first

This is the part most guides skip. Under 14 CFR part 254, on any flight segment using large aircraft "an air carrier shall not limit its liability for provable direct or consequential damages" for lost, damaged or delayed baggage below a set floor — and carriers must tell you so, in the regulation's own words: "Federal rules require any limit on an airline's baggage liability to be at least $4,700 per passenger." The Department of Transportation reviews that figure every two years against the CPI, so it moves.

That floor applies to domestic interstate and intrastate carriage. It is larger than every insurance baggage benefit in the table above. Claim with the airline first; your policy is there for the shortfall, for the segments the rule does not reach, and for theft that never involves a carrier at all.

Delay is a different, smaller benefit

Losing a bag for two days is not the same claim as losing it forever, and the numbers reflect that. Seven Corners Choice pays baggage delay "up to $100 per day, to a maximum of $500" after 6 hours. Tin Leg Gold pays a maximum of $200 with a $100 daily limit — but only after 24 hours, one of the least generous waiting periods we found. Travelex Ultimate pays $500. Seven Corners also limits what you may buy: "Necessary Personal Items do not include jewelry, perfume, or alcohol."

The exclusions that catch people

Both insurers we read in full exclude the same behaviours. Seven Corners will not pay for "theft or pilferage while left in any unlocked or unattended vehicle," nor for "property shipped as freight or shipped prior to the Scheduled Departure Date." Tin Leg conditions the benefit on you having "taken all reasonable measures to protect, save and/or recover the property at all times."

Passports get their own small line: Seven Corners pays "Passport, Visa or Other Travel Documents Replacement up to $200 maximum."

What to do about it

Insure the trip, self-insure the camera. For most travelers the right answer is a mid-range comprehensive plan plus a scheduled-item rider on home contents for the expensive objects. Our comparison of credit card protection against a standalone policy covers the other partial patch people lean on, and how to read a benefit table before you buy shows where these caps hide. If you are buying at the cheap end, budget cover under $50 explains what gets cut first — baggage, usually.

Use the coverage estimator to decide which limits actually matter for your trip, and check plan pricing on HelloSafe for a second view before you buy.

FAQ

Does travel insurance cover lost luggage?

Yes, under a baggage and personal effects benefit, but subject to three separate caps: an overall limit, a per-article limit, and a combined limit on valuables such as jewellery, watches, precious metals, furs and camera equipment. As of September 2026 the plans we read range from 500 dollars to 2,500 dollars overall, with per-item limits between 100 and 500 dollars.

How much will travel insurance pay for a stolen camera?

Usually far less than the camera is worth. Tin Leg Gold caps described property including cameras at 250 dollars combined, Travelex Ultimate at 500 dollars without its baggage upgrade, and Seven Corners Choice at 1,000 dollars combined. Payment is on actual cash value, which Tin Leg defines as purchase price less depreciation.

How much is an airline liable for lost luggage?

For US domestic flights using large aircraft, federal rules require any limit on an airline's baggage liability to be at least 4,700 dollars per passenger, and the Department of Transportation reviews that amount every two years using the Consumer Price Index. Claim with the airline first, then take any shortfall to your travel insurer.

Do I need a police report to claim for stolen baggage?

For theft, generally yes. Tin Leg Gold requires original receipts and a police report from the local jurisdiction before it will reimburse. Travelex requires original receipts for any item over 250 dollars. Keep the carrier's property irregularity report too if the loss happened in transit.

How long does luggage have to be delayed before insurance pays?

It depends on the policy and the waiting periods vary widely. Seven Corners Trip Protection Choice pays baggage delay after six hours, up to 100 dollars per day to a maximum of 500 dollars. Tin Leg Gold requires a minimum delay of 24 hours and pays a maximum of 200 dollars with a 100 dollar daily limit.