We will pay this benefit up to the Maximum Benefit shown on the Certificate Schedule for damage to or loss or theft of the Insured Person’s Baggage on a Covered Trip, in the event that the Insured Person’s checked or stored Baggage is stored with a hotel or motel in which the Insured Person is registered as a guest. We may choose to replace, repair, or pay for the loss after making allowances for depreciation and wear and tear.

There are special limits of liability for some specific personal possessions. These limits do not increase the Insured’s total benefits under this coverage. We will not pay more than $500 for the first item of Baggage and, thereafter not more than $250 per item of Baggage up to the Maximum Benefit shown on the Certificate Schedule.

We will not pay for damage to or loss of: (a) animals; (b) property used in trade, business or for the production of income; (c) motor vehicles, aircraft, and other conveyances or equipment or parts pertaining to such conveyances; (d) artificial limbs, false teeth, any type of eyeglasses or contact lenses; (e) tickets, except for administrative fees required to reissue tickets; (f) money, stamps, stocks and bonds, postal or money orders; (g) property shipped as freight, or shipped prior to the Departure Date; (h) credit cards; (i) contraband; and (j) hearing aids.

We will not pay this benefit for loss due to: (a) defective materials or craftsmanship; (b) normal wear and tear; (c) deterioration; or (d) rodents, animals or insects.

We will pay the cost of repair or replacement of the damaged Baggage less depreciation. We may take all or part of the damaged Baggage at the appraised or agreed value. In the event of a loss to a pair or set of items, We may at Our option: (a) repair or replace any part to restore the pair or set to its value before the loss; or (b) pay the difference between the value of the property before and after the loss.

This coverage does not include loss caused by Baggage delay.