Travel insurance policies are leaving many customers underinsured for their most valuable items, such as cameras, jewellery, money and even clothes, according to a study by The Research Department.

The findings show that almost all travel policies have restrictions on the levels of cover that they provide for single items, valuables and cash.

Customers are also short-changed by the fact that travel insurers cover on an indemnity basis and only have to pay for the se-cond-hand market value of the stolen item.