Even if you arrive at your destination without being bumped, downgraded in class, or facing a canceled flight (as discussed in the prior month’s newsletter), your luggage may occasionally encounter issues. If your luggage is merely delayed, it becomes a simple matter to determine if you qualify for compensation under the regulations. (Remember, foreign travel may have different rules.) However, if your luggage is lost or damaged, it becomes a far more complicated matter. Before explaining your rights, consider four steps to help protect your luggage.

Identifiable Luggage. 

The first step is to make your luggage look unique and track its location. I get an iridescent two-inch tape to wrap around the bag whenever I travel. I wrap it horizontally and vertically like an X. Nobody can mistake my luggage, which makes it easy to identify. The second thing I would do is put an Apple AirTags tracker in your suitcase. They sell for about $30. About a year ago, a story went viral on the Internet, where a woman was flying domestically, but her bag ended up in Europe. Because her bag was at the airport, and there were so many modems and telephone connections within the terminal, she was able to tell the airlines where her bag was. Based on this woman’s information, her bag was probably returned several days earlier than it probably would have been. 

This paragraph is slightly off-topic, but the Apple AirTags have proven so successful in stopping car thefts that on January 21, 2025, a story in the newspaper stated the Arvada, Arizona police are giving its citizens free AirTags to stop automobile thefts. You might consider expanding your use to include dogs and cats, suitcases, school backpacks, vehicles, and many other items of personal property. 

If there is something breakable in your luggage, and the Airline allows you to check it in, I would put a sign on your luggage on all four sides that says, Handle with Care-Breakable” the same way most people do when they are shipping a box. In my experience, unless a baggage handler is having a terrible day, they don’t intentionally “go to war” on your bag. If they have adequate notice, they usually treat your suitcase appropriately. You might want to go the extra step and make the baggage clerk who takes your suitcase sign a statement saying there was a breakable item within the checked luggage.

List of Luggage Contents

Take pictures of everything in your suitcase. If you have a smartphone that takes videos, it will only take you a second. I couldn’t think of everything when I lost a suitcase and tried to recall what was in it when I was talking to the agent at the terminal. I missed so many little things, and my description of some of the clothing was terribly inaccurate. How will you know what you have if you don’t have a list? Alternatively, as a last resort, list every item you place in your suitcase. Conceptualize it in your mind like a balance scale. The “pro side” is having an exact list of what is in your suitcase. The only downside is making your list or taking pictures takes a little time and effort.

Carry on and Insure Important Items

Thirdly, you should carry on board anything that is really important and that you cannot afford to lose. I take a fair amount of medication, and I always carry my medicines on the plane and under my seat. I never put it in the overhead bins. I also have a sleep apnea machine. (“bi-pap”) and like all medically approved necessities (like wheelchairs, crutches, canes, walkers, and many more items), they are not counted in the number of pieces of luggage you can carry on the plane. 

You are well advised to carry credit cards, jewelry, expensive cameras, keys, passports, tour vouchers, and important papers in your person and put them under your seat and not in the overhead bins. I was on one flight where a woman’s purse was the equivalent of a large carry-on bag, and she tried to squeeze it into my compartment but couldn’t do it, and without my knowledge, she moved my overhead luggage to another seat. The person in the other seat thought the overhead luggage was his and tried to take it with him. I would never place valuable items in the overhead compartment.

If you have expensive paintings, documents, or other items to send by plane, purchase additional insurance from the Airline. Without the additional insurance, the Airline’s liability is limited to the generic dollar amount that applies to every passenger.

Name, Address, and Phone Number

If a bag falls off a conveyor belt and the baggage handler cannot know whose bag it is, your odds of quick recovery are significantly diminished. You should have a luggage tag on the outside of your CPS with a name, address, and phone number. I have a leather luggage tag with name and address information that anyone can only access by removing the strap to see the inside. I don’t recommend walking around with your name and address visible because it may be an invitation to burgers at your house that is empty. In these days of cell phones, I’m comfortable having my phone number with my information. However, I listed my son’s address instead of mine when deliver

ing the suitcases.

You should have a large cardboard or paper sign with all that information inside the suitcase. If someone has accidentally taken your suitcase and finds your name, they will first call the airlines to get their suitcase back. They will say that I accidentally have Ted Gordon’s suitcase, and I want to return it and retrieve my own.

To Whom Do You Complain or Report

When you have a luggage problem, you must discuss the matter with your Airline’s baggage desk. Their baggage desks are often on a different floor, where you check in for departing flights. If you had to change planes during your itinerary, check in the first (original) airlines whose flight you boarded initially as the Airline to deal with. You want to present whatever documentation you have about your flight, such as boarding passes or baggage tags. Also, bring the receipt if you had to purchase any items because of your lost or delayed luggage. Typically, you will have to file a claims form, and this is where we have pictures of your suitcase and its contents, which are invaluable.

It may sound silly to mention that the form has reference numbers you might need when you file a claim. Be sure to keep a copy of your claim form. I had a cousin who did not keep a copy and called me in a panic. As a favor, I spent 15 minutes on the phone tracking down and getting a duplicate claim copy.

DELAYED LUGGAGE

The airlines do occasionally lose luggage, but not frequently. Usually, the airport’s electronic systems allow them to recover a misplaced bag within a few hours or even a few days. Of course, without the contents of your bag, you may be forced to buy underwear or even clothes and other accessories.

The traditional rule is that you are compensated for anything you buy that is reasonably necessary, have documentation of purchase, and was required because of the delay. Each Airline has its limit, but it should be at least as high as the limit for lost luggage. The Department of Transportation rules specified that the Airline cannot arbitrarily select a per diem amount or per hourly amount for the delay. In other words, they are not allowed to offer you $65 a day but must compensate you based on your purchases. 

LOST LUGGAGE

Airlines do not often completely lose your luggage comma, but when they do, you are entitled to compensation. In 2024, the maximum liability for the Airline is $3,800 per passenger, regardless of the number of bags involved. (The airlines have posted regulations excluding specific categories of items, such as electronics, cash, jewelry, and other items.)

Separate from the $3800 limit, the airlines must pay for any lost medical assistance devices, like wheelchairs, electric scooters, portable oxygen concentrators, prescription medications, and the like. They must compensate you for the original purchase price of the item. There is no deduction for depreciation, as there is in determining “actual cash value” for ordinary items of personal property.

There doesn’t seem to be any definition of “lost,” but most airlines have policies finding lost as being undiscoverable within 5 to 14 days after the flight. Don’t expect an immediate check from the Airline or possibly luggage. Be prepared to sharpen your negotiation skills and seek sources to verify the original cost of the lost items. According to the Department of Transportation, filing a claim takes four to six weeks before you are reimbursed.

DAMAGED LUGGAGE

If the Airline damages your luggage, they are responsible for the cost of repairs. The Airline may argue that it lacks liability because of three common exceptions. 

First, they have no responsibility if the damage was caused by you packing the suitcase improperly.

Secondly, they are not liable for pre-existing damage to your luggage. What the heck that means is anybody’s guess. They are not responsible if they can prove the damage existed before you brought it to the Airline.

Third, and most importantly, they don’t have to compensate you for the item’s cost or the item’s replacement value. They must only pay you for the current market value, traditionally defined as the cost less depreciation. The correct legal term is “actual cash value.” Here is the area where most passengers want to rip their hair out by the roots, and it is complex enough to warn a full section of the discussion below.

Carry-on luggage is also the responsibility of the Airline. Remember that, in 2024, the maximum liability for damage or loss of all luggage is $ 3,800 per passenger.

While the information cited in this article is, to my knowledge, accurate, it may not remain so as rules change daily with the executive branch dismantling agencies or altering administrative powers. Major airlines have already filed a federal lawsuit to challenge the broad regulations created by President Biden, which provided significant consumer protection. This primarily focuses on persons with disabilities, such as people with walkers, scooters, and wheelchairs). But it also seeks relief from other provisions, including reimbursement schedules. My crystal ball is no better than anyone else’s, but I predict that if the lawsuit fails, they will ask the Trump administration to change the rules.  

ACTUAL CASH VALUE

Because attorneys are so expensive, you rarely see a lawyer arguing a case with the Airline. However, as an attorney, I had many discussions with the insurance company on the loss of personal property caused by a fire to an insured premises. It is exactly – and I repeat exactly – the same issue, just with a different defendant.

Definition

The airlines compensate you for lost or damaged luggage based on its actual cash value (ACV), sometimes called its depreciated cash value. You first calculate the replacement cost for a new item, then deduct depreciation over the life of your ownership. Whatever percentage remains is the amount the Airline will compensate you. There is a straight line, appreciation, and accelerated appreciation for tax purposes, but for replacement, it is most common to use straight-line depreciation. In other words, if an item of personal property has an expected useful life of three years, then it depreciates at 33.3% per year for each of the three years. Thus, if you owned the item for two years, the insurance company would subtract 67% for depreciation and pay you the remaining 33% as the property’s current value.

Example

Assume you purchased a brand-new widget in January 2021 for $2300 plus sales tax (8.6% in Arizona) for a total acquisition cost of $5,500. According to various tables about an item’s useful life, the widget is given a five-year life. Assume you are traveling in February 2025, and your luggage, including the widget, is lost, and you are arguing about the widget’s value with the airlines. The airlines correctly say that after four years of ownership of the widget, it is only worth $500 ($5,500 divided by five, and then multiplied by four years).

Proof of Value

Often the airlines will make you prove the item was in your suitcase, which is sometimes difficult to do after the fact. The matter becomes simpler if you have taken pictures of everything in your bag.

Next, they will ask you for proof of the purchase value. Ideally, this would be a receipt from when you purchased a project, but a few people have that document. Usually, passengers must rely on bank statements showing the purchase, maybe a photograph of the item, product warranty statement registration, or other written verification. Absent that, the best is witness testimony in the form of a written declaration that they saw you with such an item or gave it to you as a gift.

When arguing with your agent, remember they have a liability limit ($3,800 in 2024 per passenger).

My wife says I am “Bird Walking” when I discuss something unrelated to the topic. I highly recommend you take pictures of every room in your house, showing everything in the house. Then, give those digital pictures to your kids or store them in a safety deposit box or elsewhere out of the house. I have had clients who took extensive pictures of everything in the house, but such pictures were lost when their home burned down.

Conclusion

Aren’t you glad that your own luggage is only occasionally lost or damaged? The Airline (in my opinion) benefits from dragging out the negotiations in two ways. First, the longer you are without compensation, the more likely you will accept a lower settlement to resolve the matter. Secondly, if you take the thousands of claims a year against the Airline, the Airline no longer holds onto the money; the more money there is in interest.

 —————————————————————

Ted is a retired attorney, so he is writing only as a layperson. This article provides general information only and should not be considered as specific advice for any particular situation. It is provided without express or implied warranties of any kind, including but not limited to implied warranties or merchantability or fitness for a particular purpose. If you have a specific problem, consult a CPA, attorney, or doctor for advice. Sorry, my attorneys made me say all that!