Once an airline determines that your bag is lost, the airline is responsible for compensating you for your bags' contents - subject to depreciation and maximum liability limits.

Airlines are legally responsible for the contents of your bag while it is in their care, but they are notoriously difficult regarding "stolen" items. Under US Department of Transportation (DOT) and Montreal Convention rules, airlines must compensate you for "lost, damaged, or delayed" baggage up to approximately $3,800 (domestic) or $1,700 (international). However, if an item is specifically stolen from inside a bag that arrives on the carousel, the airline will often argue that it is a criminal matter for the police (TSA or airport security) rather than a baggage handling claim. To get reimbursed, you must file a "Mishandled Baggage Report" at the airport immediately and provide proof of value (receipts) for the missing items. Be warned: almost all airlines explicitly exclude "valuable" items from their liability, such as jewelry, cash, electronics, and cameras. If these items are stolen, the airline will likely deny the claim. For 2026 travelers, the best protection is to never pack valuables in checked luggage and to use TSA-approved locks, as this creates a physical deterrent and evidence of tampering.