【Is travel cover really enough?】If your camera, phone or laptop is stolen, does travel insurance pay the full original value?

When travelling, smartphones, laptops and cameras are all essential “travel companions”. If they are stolen or accidentally damaged during your trip, does simply purchasing travel insurance mean you can claim the full original value from the insurer?

The answer is: not necessarily.

Under travel insurance, “personal belongings cover” can indeed protect against loss of or damage to personal items during the trip as a result of robbery, theft or accidents. However, claims are not unconditional, and compensation does not mean you will automatically be reimbursed for the full original purchase price. Policies usually include an overall claims limit, sub-limits for individual items and exclusions, and some insurance products do not even cover mobile phones. 

10Life takes a closer look this time. 

• If your mobile phone, computer or camera is stolen or robbed → Report the incident to the local police within 24 hours and obtain a written report; some claims can only be processed with a police report
• If electronic items or luggage are damaged → Take photos immediately for record purposes, and keep the damaged items and repair quotations
• When making a claim → Prepare the purchase receipt, model number, date of purchase, police/airline report and relevant photos
• Before taking out cover → Check whether there are item-specific limits for mobile phones, computers and cameras; some products do not cover mobile phones
• How claims are paid → Compensation is not always paid in cash at full replacement value; in some cases, payment may be based only on repair costs, depreciated value or the policy limit 

Many people see a $20,000 limit for “personal belongings cover” and assume that if their phone, laptop or camera is stolen or damaged, they can claim up to that amount.

In fact, travel insurance policies usually set separate sub-limits for high-value items such as mobile phones, laptops and cameras. Take MSIG iTravel Go Plan A as an example: the overall limit for personal belongings is $20,000, but the maximum claim is $3,000 for a mobile phone, $6,000 for a laptop and $5,000 for a camera. In other words, even if an item originally cost more than $10,000, you may not be able to recover the full purchase price or the overall limit. 

Mobile phones and computers are commonly used travel items, but not every travel insurance policy necessarily provides cover for them. Among the eight products above, six offer mobile phone cover, with compensation limits ranging from $2,000 to $3,000; the QBE and Ping An related plans do not offer mobile phone cover.

As for laptops, most products provide cover, with compensation limits ranging from $3,000 to $10,000. Among them, the Generali Travel Insurance Premium Plan offers the highest compensation, up to $10,000. However, the Ping An related plans do not offer laptop cover. If travellers plan to take a mobile phone, laptop or camera with them, they should read the relevant sub-limit cover carefully before taking out a policy, rather than comparing premiums alone. 

Even if property falls within the insured items, the compensation amount is not necessarily equal to the purchase price. Insurers will generally calculate compensation based on the item’s period of use, depreciation, wear and tear, repair costs, or the policy limit.

For example, if an electronic product or suitcase is accidentally damaged, the insurer may not directly pay cash for you to “buy a new one”, but may instead compensate based on the repair cost, repair quotation, or depreciated value. Therefore, the insured should keep the damaged item, take photographs as evidence, and obtain a repair quotation or inspection report.

If an electronic product or suitcase is accidentally damaged, compensation is not necessarily handled in the form of cash to “buy a new one”. In some cases, the insurer may only compensate based on the original repair cost, repair quotation, depreciated value, or the sub-limit specified in the policy. Therefore, the insured should keep the damaged item, take photographs as evidence, and obtain a repair quotation or inspection report.

Therefore, the purpose of travel insurance is to reduce losses, not to guarantee full compensation at the original price. If you are travelling with expensive electronic products, you should pay particular attention to the relevant sub-limits, depreciation arrangements and compensation methods. 

Travel insurance claims cannot be substantiated by verbal account alone. If belongings such as a mobile phone, laptop, camera or luggage are stolen or robbed, the insured person will usually need to report the incident to the local police within 24 hours and obtain a written report stating the circumstances of the incident, the lost items and the estimated amount of loss.

If a suitcase is damaged by the airline, the insured person should report it to the airline before leaving the airport and obtain a baggage damage report or property loss report. Without the relevant evidence, the insurer may refuse to pay compensation.

In addition, if the loss is caused by the insured person’s own negligence, such as leaving a mobile phone, handbag, laptop, camera or luggage in a public place like a restaurant, bus, taxi or hotel lobby, or leaving belongings unattended, it may also be regarded as an exclusion.  

• Some policies may limit the compensation amount per item, per category of electronic product, or per insured person. You should read the terms carefully before taking out cover.
• Some plans may only cover one mobile phone or one laptop computer; even if you carry multiple devices, you may not be able to make a claim for all of them.
• Cameras, lenses and accessories may be treated as a single item for compensation purposes, and separate claims may not be possible.
• There is usually a deadline for submitting claims, and travellers should apply to the insurer as soon as possible after the trip ends.
• When making a claim, you should keep all relevant documents, including purchase receipts, repair quotations, police reports, confirmation from the airline or transport operator, and photographs of the damage. 

The personal belongings cover under travel insurance can indeed help reduce losses if your belongings are stolen, robbed or accidentally damaged during your trip, but that does not mean you will always be reimbursed at the full original value. Items such as mobile phones, laptops, cameras and suitcases are often subject to sub-limits, depreciation, repair costs and claims documentation requirements.

Therefore, before taking out a policy, do not compare premiums alone. You should also pay attention to the overall limit for personal belongings claims, sub-limits for electronic items, exclusions and the claims process. If you want to save time, you can visit the 10Life travel insurance page to compare the cover, premiums and actuary ratings of various travel insurance plans on the market. Read the details carefully before you buy, so you can travel with greater peace of mind.  

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.