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Luggage Depreciation Guide 


Traveling allows you to immerse yourself in new cultures, witness amazing sights, and create unforgettable memories. While your personal safety should always be your top priority when traveling, protecting your valuable belongings is your valued possessions is important too.

Whether you’ve filled your case with your favourite clothes, your most-loved shoes, or you are carrying your smartphone to capture those precious holiday moments, 1Cover travel insurance is the one thing you need when one thing is lost, stolen, or damaged.

When submitting a claim for luggage and personal effects, it's important to know that depreciation may be applied.  Learn more about how 1Cover 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 1Cover apply Depreciation?

Yes, 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 1Cover, 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)


Self-care products such as, cosmetics, moisturiser, skin care, make-up, perfume, fragrances, dental products, and haircare products.


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).


Miscellaneous travel items

Other miscellaneous items you may be traveling with such as books, magazines, souveniers, sunglasses, speakers, headphones and hearing aids.


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).


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.


Prescription glasses

Eyeglasses, spectacles or contact lenses with a prescription from an optometrist.


Camping & sporting leisure equipment

Camping and sporting goods such as surfboards, skis, snowboard, tennis racket, golf clubs, fishing rod, balls, nets and protective gear.


Musical instruments

Devices used to produce music such as guitar, keyboard, drums, violin, flute, saxophone and trumpet.


Jewellery & watches

Jewellery items designed to be worn such as earrings, rings, watches, chains and necklaces and pendants.



How to Avoid Depreciation

There are certain circumstances where we don't apply depreciation. Read on below for tips to safeguard the full value of your belongings.

Specify your High-Value Items

You can avoid depreciation on items less than 12 months old by specifically adding them to your policy when you purchase. 

Simply get a quote and look for the extra option to add high-value items.
Learn more here.

Take Care of Your Belongings

Leaving high-value items at home is one way to safeguard them, but we've got tips to help you take extra care of your belongings while on holiday, so you can reduce the likelihood of them being lost or stolen.  Read our luggage tips.​​

Keep proof of purchase

You can maximise your claim by providing evidence of your items’ value such as receipts or credit card statements showing the date purchased and the amount paid.  Learn more on receipts.