Wide variations in travel insurance cover for luggage damage

There are big differences between travel insurers when it comes to covering damage to luggage. For example, where one insurer will reimburse a maximum of €100 for damage to a phone, another insurer will reimburse up to €750, according to research by Switching.co.uk , which was carried out at 12 insurers. Also, some insurers cover certain claims as standard from the basic policy, where other insurers require supplementary insurance for the same coverage. 

The policy conditions contain long lists of exceptions and specific situations where (partial) compensation is not paid in case of damage. For instance, a degree of personal responsibility always applies. If the damage is caused by the insured's carelessness, the insurer may choose not to compensate. This makes it unclear to many Dutch people what is and is not insured. This can lead to financial setbacks the moment one starts claiming on the insurance. 

One of the biggest differences between travel insurance policies can be seen in the coverage within supplementary versus basic policies. Basic insurance often offers minimal coverage (medical expenses and sometimes emergency assistance), while damage caused by natural disasters, e.g. damage to certain luggage or early return costs, are often not covered. Supplementary insurance policies offer broader coverage, but this comprehensive coverage is not always clearly communicated. As a result, Dutch people may not realise that their basic insurance does not provide sufficient protection while travelling. 

Jeremy Broekman, property-casualty insurance expert at Overstappen.nl agrees that policy conditions do not always make it clear exactly what is covered and what is excluded in a specific situation: "If, for example, you are going on holiday to Japan and there is a threat of earthquakes, check carefully whether your current insurance policy covers enough. If this is not clear from the policy conditions, it is advisable to contact the insurer. They will help you in a targeted way and clarify your personal policy and its coverages." 

All insurers have stated in their terms and conditions that the insured is covered only in case of unforeseen circumstances. If the cause of the damage could have been reasonably foreseen by the traveller, these insurers will not pay out. Misunderstanding these terms and conditions can lead to Dutch nationals unexpectedly facing high costs if their damage is considered foreseen. 

In case of damage caused by natural disasters such as floods or earthquakes, 10 out of 12 travel insurers refer to the emergency centre. This looks at each case, based on the personal situation, to what extent the damage will be compensated. For travellers, this means getting help quickly, but it can also mean depending on the emergency centre's guidelines.