Lost and costly: What UK holiday-goers lose most on holiday and how to avoid it

How much are we losing?

For those travelling without insurance, the most common replacement cost bracket is £401–£500², with some unlucky holidaymakers spending over £1,000 to replace lost belongings. In 2024 alone, Post Office paid out £718,930³ for lost, damaged or stolen baggage claims.

Yet almost a quarter² (24%) of travellers surveyed in the UK travel uninsured, leaving themselves exposed to hefty bills if something goes wrong. Holiday insurance can be the difference between a minor inconvenience and a major financial headache.

Why do claims get declined?

Even with insurance, claims can be rejected for certain reasons. We aim to be as transparent as possible about your cover, and you should always read your policy wording before your trip. Below are some examples of why claims can be rejected.

Policy exclusions

Unattended baggage: Unattended baggage refers to baggage left in a place where you cannot see it and are not close enough to prevent it from being taken. For example, leaving your bag on a sunbed while you swim or in a hotel lobby without supervision would count as unattended. If you lose items due to unattended baggage, they're not covered under your policy.

Single item limit: While your policy will cover your personal baggage up to a certain limit (£1,500 - £3,000, depending on your level of cover), there are limits to each single item you claim for. Check your policy for details.

Gadgets: For items like smartphones and tablets, there’s limited cover provided in our standard travel insurance. Gadget cover can be added on for a small premium.

Excess limit: Your excess will depend on the level of cover you’ve opted for. But if the value of the lost item is lower than the excess, there would be no financial benefit to submitting a claim. You can take out our excess waiver add-on for an additional premium, which will remove any excess that you need to pay, per claim, per person.

Lack of proof of ownership (receipts or photos)

We need to see receipts to prove ownership and value of any item you lose. If you shop online, check your email inbox. Receipts are almost always emailed to you when you purchase.

Failure to report losses promptly to authorities

If you lose an item while on holiday, you need to inform the relevant local authority, such as the police, hotel management, or transport provider, within 48 hours. We require an official report or reference number to validate your claim. Delays or lack of documentation can lead to your claim being rejected.

Ways to protect yourself and your belongings

You can’t completely remove possibility of loss or theft, but there are best practices to follow. Be smart about safeguarding your belongings.

• Don’t leave items unattended, especially on the beach. Read our top ten tips for protecting your valuables at the beach
• If you plan to swim, use a waterproof bag for valuables or leave expensive items securely stored
• Be mindful in tourist hotspots where pickpockets operate. Keep bags close, zipped, and avoid hanging them on the back of chairs
• Watch for distraction tactics (e.g. someone spilling something on you or asking for help)
• Carry valuables in your hand luggage, never in hold baggage
• For special jewellery, wear it while travelling and store it in a hotel safe when not in use

It’s always best to arrange your policy as soon as you book your trip. That way, you’re protected not only while you’re away, but also before you travel. If you need to cancel or cut your trip short due to illness, bereavement, redundancy or other unexpected events listed in the policy, we can help you recover the costs up to the limits.

You can also read our article on how to best protect your travel documents while travelling.