The simple luggage mistake that could cost you

More than half of Aussies are unaware of a little-known travel insurance clause sparking a surge in complaints over denied claims.

The clause states that items left unattended in a public place may not be covered if lost or stolen.

According to our recent survey, 59% of Australians are either unaware of or misunderstand the policy, which includes luggage left unsupervised in hotel lobbies, beaches, taxis and buses - even for just a few moments.

What is the travel insurance unattended items clause?

In insurance terms, "unattended items" is just a fancy way of saying anything you've left out of your sight or out of reach - like that beach bag chilling on a pool lounger while you take a dip, the wallet you left at reception during your hotel checkout, or the backpack you left on the bus.

Travel insurance is there to cover the unexpected, but it won't babysit your bags for you.

A little common sense goes a long way - even if it's just for a few minutes, leaving your things unattended in a public spot is an invitation for them to disappear.

Why do tourists need to stay vigilant on vacation?

While it's easy to be lulled into a sense of security when on holiday, tourists are often prime targets for pickpockets and petty criminals.

In November 2024, DFAT's annual Consular State of Play revealed a 26% increase in theft cases abroad, alongside a 31% rise in lost passports and a 23% jump in stolen passports.

The surge in theft and lost items among travellers comes amidst rising travel numbers and persistent economic uncertainties. As travel numbers creep back to pre-pandemic levels, a spike in lost and stolen items is to be expected.

However, there are simple steps you can take to minimise the risk of your belongings going missing or being stolen.

How can you keep your stuff safe while on holiday?

When out and about, tourists should keep their belongings close by or stored in a safety box or locker at their accommodation.

Where possible, stash your valuables in a hotel safe or, if that's not an option, a secure day bag.

And if you're leaving your items in a car, make sure they're tucked away in the boot or a locked compartment. Take note - high value items like jewellery and phones have item limits, so it pays to understand your cover.

Travellers should also be diligent when sharing accommodation with others. When staying in a hostel or dormitory, you should always store your items in a locker or safety box. Belongings hidden under your bed or pillow wouldn't be covered if they are stolen or left behind.

If your stuff is nicked, always report any cases of theft to local authorities as soon possible. Your insurer will require evidence or proof of a robbery or break-in.  Without that report, your claim may be declined.

What if my luggage is lost or damaged on a flight?

Baggage blunders by transport carriers are fairly common, which is why most airlines have a standard procedure for reporting lost items.

If you land and your luggage doesn't, your airline is typically responsible and may compensate you, depending on the situation.

Interestingly, not all airports are created equal, and the process (and chances of recovering your belongings) can vary.

If your luggage is lost, stolen, or damaged during transit and your transport provider can't reimburse you (or will only offer partial reimbursement), your next step is to file a claim with your travel insurer.

Top claim tips

• Always keep receipts: Ensure you have proof of ownership for any valuable items you travel with in case they're lost or stolen. If you don't have access to digital receipts, photos of receipts, bank statements or warranties may be sufficient proof of purchase.
• Gadget cover: Not all insurers cover smartphones and cameras, so check the fine print before selecting a policy. Very often exclusions apply to cracked phone screens.
• Don't delay your claim: You will usually be required to lodge your claim within 30 days after returning from your trip. Any claims made after this time may be rejected.
• Note sub limits:  While your policy might cover luggage up to $10,000, individual items may have a cap, such as $750. Some insurers allow you to increase coverage for specific items, but this must be done before you travel.
• Check depreciation rates: Luggage and personal effects are covered only for their current value unless you have purchased additional cover. Ensure you have proof of ownership for any valuable items you travel with.

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