Luggage Depreciation guide
Lost or damaged luggage can quickly turn a thrilling ski trip into a stressful experience, but that’s where travel insurance cover for luggage can help. If the worst happens and you do need to file a claim, one important factor to be aware of is luggage depreciation.
Understanding how luggage depreciation travel insurance works is a key step in understanding your travel insurance policy and cover. Learn more about how Ski Insurance calculates depreciation below.
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).
Does Ski Insurance Apply Depreciation?
Yes, once your claim is submitted and accepted, the value of your claim may subsequently depreciate. The level of depreciation will vary based on how old the item claimed for is and what its original purchase price was.
Deprecitaion will not be applied to luggage and personal effects which are purchased during your journey, items purchased duty free before your departure, or specified high value items which are listed on your certificate of insurance.
The most we will pay out is the original purchase price of any item, less the depreciation that applies, subhect to item sub-limits detailed in the product disclosure statement (PDS).
Depreciation Rates & Calculation
We continually review our depreciation rates to ensure they are in-line with international standards and fairly applied. 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% |
|
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, tennis racket, golf clubs, fishing rod, balls, nets and protective gear. |
1.0% |
| Winter sports equipment | Skis, ski bindings, ski boots, ski gloves, ski googles, ski helmets, ski jackets and pants, ski poles, snowboards and crampons. | 1.0% |
|
Medical Aids |
CPAP machines, hearing aids, mobility scooters, walking aids, and wheelchairs. | 2.0% |
|
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 (excluding smartwatches), chains and necklaces and pendants. Limits apply for multiple items. |
0% |
*For items not listed above, we will apply the depreciation rate of the category which we reasonably determine most closely describes your item.
How to Avoid Depreciation?
You can avoid depreciation on items less than 12 months old by specifically adding them to your policy when you purchase. You can purchase up to $5,000 of additional cover for high value items that are less than 12 months old. You can do this by listing each item and its value when you apply for cover. Please note that high value item cover is not available for jewellery, bicycles, watches and watercraft (apart from surfboards).