Frequent travelers know there are risks in checking luggage. There are times, though, when you have no choice, so you should minimize your risks know where you stand if things go wrong.  When problems do occur, the airline will take some responsibility for replacing contents of lost luggage or for repairs due to damage that they cause.  There are limits, however, on how far they will go to settle a luggage claim. These limits are part of your contract and vary by carrier.  The following usually apply:

1. The liability limit on lost, damaged, or delayed luggage for domestic travel is $1,250 per passenger on aircraft of more than 60 seats. This also applies to flights on smaller aircraft, which are included on the same ticket with larger planes. This is the most an airline will pay to settle a claim for your entire luggage, regardless of how great your loss may actually.

2. Some airlines offer "excess valuation" insurance. The charges vary, but are usually $0.50 to $2 for every $100 in coverage.  Even then, it applies only when luggage is in the custody of the airline.  If your bag has been damaged or doesn't show up, do not leave the airport until you have reported the problem!

3. Make sure that you get a copy – along with the name of the person who took your report – for your documentation of your claim.  If a loss of contents is subsequently discovered later, report if immediately as well.