If your luggage does not reach your destination with you within a certain time, you may be entitled to compensation; it depends on the extent of the delay – most airlines will start to compensate you after 24 hours. They may only compensate you for essentials such as an immediate change of clothes. It also depends on whether you are at home or somewhere else – if you are at home without your luggage, the airline’s view is that you don’t need as much compensation. Before you travel, you can purchase extra coverage for lost or missing luggage; unless you have something of particular monetary or sentimental value, it probably isn’t worth the extra cost.
If you need to make purchases because you are missing items in your luggage, be sure to keep the receipts so you can be reimbursed. If your luggage is never found, you are entitled to financial compensation up to the value of the goods inside. In this case the airline will probably send you forms to fill out specifying the contents and value of your luggage.
You are also entitled to receive compensation for damaged bags although it generally doesn’t cover everyday wear and tear of your luggage. If you believe the airline has damaged your bag, you generally need to report it in person – along with the bag - rather than by phone. You are not entitled to compensation for loss or damage to your carry on bag or any items in them.