Lost or stolen belongings on holiday: When does travel insurance cover you?
Picture this: you're enjoying a frozen daiquiri at the hotel swim-up bar when you decide it's the perfect time for a holiday selfie.
You swim back to your lounger, where you left your phone, only to discover it's gone.
Not exactly the holiday memory you were hoping for.
Having your phone stolen overseas can be frustrating and expensive. You might assume travel insurance will simply cover the replacement cost, but unfortunately, that isn't always the case.
One of the most commonly misunderstood parts of travel insurance is the requirement to take reasonable care of your belongings.
Leaving your phone unattended on a sun lounger while you go for a swim, for example, may mean you're unable to claim for theft. A safer option would have been to leave it securely in your locked hotel room, use a locker or keep it with you.
The same principle can apply if you accidentally leave an item behind or put it somewhere it could be taken without you noticing.
Luggage and personal belongings cover
Travel insurance can cover the theft, loss or accidental damage of luggage and personal belongings while you're travelling. However, cover is subject to the terms, conditions and exclusions of your policy, including taking reasonable care of your belongings.
That doesn't mean you need to spend your holiday constantly worrying about thieves. But a little common sense can go a long way.
So, what does unattended actually mean when it comes to travel insurance?
Here are some examples of situations where you may be covered — and others where you may not be.
When you may be covered
- You're on the subway in New York when your wallet is stolen from your pocket. Depending on your policy, you may be covered for the theft of your wallet, cards and eligible cash.
- You've locked your passport and camera in your hotel room safe. When you return, the safe has been broken into and your belongings have been stolen. Your policy may cover eligible costs associated with replacing the items.
- You're having dinner at a seaside restaurant when someone steals your bag from under the table. Provided you've taken reasonable care of the bag and report the theft to the relevant authorities, you may be covered for eligible stolen items.
- You've locked your day bag in the boot of your hire car while taking a short walk. When you return, the car has been broken into. Depending on the policy and circumstances, you may be covered for items stolen following forced entry.
- You've just arrived in Bali, but your luggage doesn't turn up for another 48 hours. Your policy may reimburse you for eligible essential items you need while waiting for your luggage, subject to policy limits.
When you may not be covered
So what does leaving an item unattended actually mean?
You may not be covered if your belongings are:
- Left unattended at a hotel, including after you have checked out.
- Forgotten on an aircraft after you disembark.
- Left on the airport conveyor belt after arrival.
- Left on the beach while you go swimming.
- Left in the back of a taxi or rideshare vehicle.
- Left behind in a restaurant, including on or under a table.
- Left in a vehicle where they have not been stored securely or there is no evidence of forced entry, depending on your policy.
- Given to someone you don't know to look after.
- Sent separately or unaccompanied by freight.
There may also be specific exclusions and conditions relating to intoxication, leaving items with transport providers and other circumstances. Always check the Product Disclosure Statement (PDS) for the policy you purchase.
How to reduce the risk of theft while travelling
You don't need to spend your holiday constantly checking over your shoulder, but taking a few simple precautions can help protect your belongings.
Use available security
If your hotel room has a safe, use it. If there are lockers available at the beach or pool, take advantage of them. When travelling by car, store valuables securely rather than leaving them visible.
Stay aware of your surroundings
Tourists can be targets for pickpockets and bag snatchers. Before exploring a new area, do some research and ask locals or hotel staff if there are places you should avoid.
Take only what you need
The more valuables you take with you, the more you have to keep track of. Consider leaving unnecessary jewellery, electronics and other valuables securely at your accommodation.
Choose a secure bag
Cross-body bags, backpacks with secure compartments and bags that can be kept close to your body can make it more difficult for opportunistic thieves.
Do a final check before leaving
Before getting off a plane, train, bus or taxi, take a moment to check your seat and surrounding area. The same goes when leaving restaurants, bars and other public places.
Tips for making a lost or stolen belongings claim
If something does go wrong, acting quickly can help make the claims process smoother.
Report the incident as soon as possible
If an item has been stolen, lost or damaged, report the incident to the relevant authority as soon as possible. Depending on the circumstances, this may include local police, your airline, hotel, transport provider or tour operator.
Keep evidence
Hold onto receipts and any documentation that may help support your claim. Depending on the item and circumstances, this could include proof of purchase, bank statements, photographs or reports from local authorities.
Keep your insurer's details handy
Save your insurer's emergency assistance number and keep your policy details accessible while you're travelling.
Check your limits for valuable items
If you're travelling with expensive items such as cameras, jewellery or sporting equipment, check whether they are covered within your policy's standard limits. You may need to specify certain high-value belongings when purchasing your policy.
Check whether another provider is responsible
In some situations, an airline, accommodation provider or transport company may be responsible for your loss. Your travel insurer may ask you to seek compensation from the relevant provider first, depending on the circumstances and policy terms.
The bottom line
The rules around unattended belongings can sometimes feel complicated, but the principle is relatively straightforward: keep your valuables secure and take reasonable care of them.
Whenever possible, keep your belongings within your sight and reach, or store them somewhere secure. Understanding your policy before you travel — particularly the exclusions relating to unattended items — can also help prevent surprises if something goes wrong.
If you're unsure whether a particular item or situation is covered, check your Product Disclosure Statement or contact us before you travel.
