Liability for lost baggage increases in US

The US Department of Transportation has increased the airline liability for lost, delayed or damaged baggage from $2800 to $3000 effective 28 February 2007. (Thanks to Flight Wisdom for alerting me to this news.)

This improvement only applies to US domestic flights, and only if on a wholly US itinerary. International flights (and US domestic flights on a ticket that includes international flights) are still covered under the Montreal Convention to 1000 SDR (Special Drawing Rights, currently worth about US$1.50 or 1.15 euros each).

So I guess if you are going to lose a bag you'd prefer it to be on a US domestic ticket. If you have valuables you will still need to insure them separately.