Read the fine print

Many policies contain statements like "up to $12,000 of coverage on luggage and personal effects".  However, look at the small print, which may reveal that only $700 will be covered per item.  These are known as 'sub-limits' and can result in a nasty surprise when you lodge a claim, especially if you're planning to travel with expensive equipment such as laptops or cameras.

Everyone of your policy's loopholes and limitations will be in the fine print somewhere, and knowing them well will ensure that your coverage applies as needed if you do need to make a claim.

For example, if your bag is stolen while you're swimming at the beach in Koh Samui, some insurers may deny the claim as "the items were left unattended".

Similarly, some policies exclude loss and theft that occurs while you are intoxicated, so try and avoid losing your mobile phone in a nightclub.

If you are aware of the fine print it can help you to avoid engaging in behaviour or situations that are unlikely to be covered by your insurance.

You get what you pay for

Cheaper travel insurance often entails higher excess fees and less-comprehensive coverage, so be diligent in combing through the fine print if you're considering a policy whose price seems too good to be true.  Insurance companies that have capped item limits, tend to offer additional insurance for more expensive
items. Naturally this comes at an additional price.   Where you're going and what you're taking will help determine if a policy with sub-limits offers you value for money and peace of mind.

Keep your receipts

If you need to make a claim it is much easier if you can supply a receipt for the item.  Most insurers won't honour anything that's lost or stolen unless you can prove that you bought it.  Get into the habit of keeping receipts for everything you buy, especially for more expensive items of clothing, perfume, and electronics.  While some people recommend taking photos of the items in your suitcase to support your insurance
claims, this method is not always accepted as proof of ownership.   The original receipt is the best form of
evidence and will make your life much easier when dealing with the insurance company.

Making a claim

Every policy will differ on its stipulations for lodging a claim. No matter how difficult those stipulations seem you need to stick to them as best you can if you want your claims to be fulfilled.  This is especially true with stolen items.  If you have any items stolen whilst travelling make sure you obtain a police report.  While it may be challenging to file a police report in remote places, dealing with things at the time as best you can is a
lot easier than returning home and having your claim denied.

To discuss your travel insurance requirements please contact one of our brokers at McKenzie Ross.