Luggage Depreciation
Traveling is thrilling – with just a suitcase and a world to explore there’s no stopping you, however it's wise to remember to prioritise your safety and protect your belongings while on the go.
Whether you’ve packed your top of the range camera to capture all the precious moments, your laptop to do a bit of remote work, or your favourite shoes, make sure you pack travel insurance to cover your belongings no matter where you’re zooming.
If things unfortunately go pear shaped and you need to make a claim for lost or stolen luggage, it's important to know that depreciation may be applied. This guide explains what depreciation is and how it applies to your policy and your stuff.
WHAT IS DEPRECIATION?
Depreciation is the reduction in value of your items over time due to use, wear and tear and obsolescence (reduction in value due to changes in technology or fashion).
Once you’ve made a claim and it’s been accepted, the value of your claim may then depreciate depending on how old the item is and how much its original purchase price was.
At Zoom, we do not apply depreciation to luggage and personal effects purchased during your Journey, Specified High-Value items listed on your Certificate of Insurance, or items purchased duty free prior to your departure.
Subject to the item sub-limits set out in the Product Disclosure Statement (PDS), the most we will pay is the original purchase price of any item less any depreciation that applies.
DEPRECIATION RATES & CALCULATION
Our depreciation rates are continually reviewed to ensure that they’re fairly applied and in line with international standards.
The nominated depreciation is applied to the age of the item (calculated on a monthly pro-rata basis), with a maximum reduction cap of 60% of the original purchase price. Depreciation will be calculated as per the table below which may change from time to time.
Depreciation table for Unspecified Luggage & Personal Effects
| Personal Effects Category | Item Description (non-exhaustive list of example items) |
Depreciation Rate (per month) |
|---|---|---|
| Toiletries | Self-care products such as, cosmetics, moisturiser, skin care, make-up, perfume, fragrances, dental products, and haircare products. | 3.0% |
|
Bags, clothing & footwear |
Your general luggage items such as clothing (e.g. dresses, jumpers, jackets, shirts, pants, sportswear, underwear) and shoes (e.g. trainers, heels, slip-ons, boots). |
2.0% |
|
Miscellaneous travel items |
Other miscellaneous items you may be traveling with such as books, magazines, souveniers, sunglasses, speakers, headphones and hearing aids. |
2.0% |
|
Mobile phones & smartphones |
Handheld electronic devices that provide a connection to a cellular network and/or the internet. Including all makes and models such as iPhones, andriod (Samsumg Galaxy, Google Pixel, Nokia). |
2.0% |
| Medical aids | CPAP machines, hearing aids, mobility scooters, walking aids and wheelchairs | 2.0% |
|
Computers, laptops & cameras |
Personal computers and laptops, along with video and photographic equipment used to capture images, videos or making films such as, DSLRs, SLRs, camcorders, lenses, tripods and lighting equipment. |
1.5% |
|
Prescription glasses |
Eyeglasses, spectacles or contact lenses with a prescription from an optometrist. |
1.0% |
|
Camping & sporting leisure equipment |
Camping and sporting goods such as surfboards, skis, snowboard, tennis racket, golf clubs, fishing rod, balls, nets and protective gear. |
1.0% |
|
Musical instruments |
Devices used to produce music such as guitar, keyboard, drums, violin, flute, saxophone and trumpet. |
1.0% |
|
Jewellery & watches |
Jewellery items designed to be worn such as earrings, rings, watches, chains and necklaces and pendants. Limits apply for multiple items. |
0% |
HOW TO AVOID DEPRECIATION
Specify your high-value items
Avoid depreciation on items less than 12 months old by specifically adding them to your policy when you purchase. Look out for the optional extras during the quote process. Learn more about high value items.
Be vigilent when you travel
Travelling is awesome, but you need to keep your wits about you. Take extra care of your belongings while on holiday, so you can reduce the likelihood of them being lost or stolen by keeping items locked in a safe at your accommodation, invest in a good cross-body bag that will deter pickpockets, never leave your things unattended.
Keep proof of purchase
We need evidence to be able to evaluate your claim. Keep receipts or credit card statements showing the date purchased and the amount paid so we can learn the value of your stuff.
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