Definition: Your baggage is lost, damaged or stolen while you're traveling. Travel insurance can reimburse you for the actual price, actual cash value, repair or replacement — whichever is less, based on the limits in your insurance policy's letter of confirmation.

Yes, most comprehensive travel insurance policies include "Baggage and Personal Effects" coverage, which can reimburse you if your suitcase is physically damaged by a "common carrier" (like an airline or cruise line). However, there are two major "catches": first, you must usually attempt to get compensation from the airline first and provide a Property Irregularity Report (PIR) as proof. Second, insurance typically pays out the "Actual Cash Value" (depreciated value) rather than the "Replacement Cost," and many policies exclude "wear and tear" like minor scratches or broken wheels unless the bag is rendered unusable. If your bag is very expensive, you should check for "sub-limits" in your policy that might cap the payout at $250 or $500 per item. In 2026, some premium travel credit cards also offer this as a secondary benefit, provided you paid for the trip with that specific card.