Alongside missing a flight and arriving at a resort only to find it is still a building site, lost luggage is one of the biggest worried (S) facing travellers today.

Indeed, following last summer's spate of handling mishaps, a sizeable proportion of travellers now prepare for a lost bag in the same way they might a flat tyre, with many packing essential items into a carry-on rucksack and then hoping for the best.

Fortunately, however, though the inconvenience of lost luggage can be great and could even turn an idyllic holiday into a living nightmare, an airport's or an airline's error needn't be financially costly for those who make sure that they have the necessary insurance policy in place.

According to the AA, those travellers whose contents insurance policy allows them to take personal possessions out of their homes could be covered for any such scenario and, as such, many could be paying over-the-odds when they go away.

Ian Crowder, public relations manager for the insurer, explained: "If you have this cover, it will include all your property – baggage, camera, personal effects, et cetera.

"There is therefore no need to include baggage cover if you take out travel insurance, thus reducing the premium, because it is covered by your home policy."

In most instances, not only will a reasonably comprehensive package cover policyholders losing possessions while holidaying in the UK but will also offer cover for any unfortunate losses incurred within Europe and even around the world.

This is certainly good news given that Britons are becoming increasingly adventurous when it comes to taking a holiday, with Australia, Africa and South America now competing with the likes of France and Spain to attract UK tourists.

Neatly illustrating this, a new report highlighting how Britons came to be parted with their pricey digital cameras has just been released by the specialist insurance provider Photoguard, with losses overseas making up a significant proportion of its claims.

Among its 'top five' claims for 2007 was the case of a holidaymaker arriving at his hotel in Peru only for the taxi driver to make off with all his luggage, which was still in the boot, though, as the experts explain, while he may have lost some valuable pictures, the unfortunate traveller is likely to have been able to recoup the cost of his equipment, had he had the right policy in place.

"With 47 per cent of photographers failing to take out specialist cover, our top five highlights why you should put your mind at rest and keep a smile on your face in the event of silly slips or massive mishaps," Sarah Gow, managing director of Photoguard, concluded.