Baggage Insurance or Personal Effects Coverage
This would provide coverage if your personal belongings are suddenly lost, stolen or damaged during the trip. To insure $1,000 worth of personal belongings for a week, it would cost about $50 per year. Before purchasing this type of coverage, find out how much insurance the airline or trip operator will provide for your belongings. Also, it may help if you check your homeowners or renters policy. It usually provides coverage for off-premises theft. So, if your luggage is stolen, your insurer will pay to replace for it, less the deductible. If you are traveling with expensive electronic equipment like personal laptop, jewelry or sporting gear, it might be more cost-effective to purchase a floater or endorsement to your homeowners or renters policy. Then the cost to insure a $1,000 ring would be between $10 and $40 per annum. This will provide full coverage for the lost item, anywhere you go, usually for one year.
(Source:Insurance Information Institute)

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