If your luggage is damaged, your holiday need not be ruined
. This happens frequently, and it can be quickly resolved by airlines.
Most important is to take out comprehensive travel insurance with a reputable agent. Take out insurance that specifically has a limit for amount of coverage that is suitable for your needs. If you are taking electronic items then it's especially important to take out an expensive policy that will cover loss of baggage. Many insurance policies don't cover expensive electronics so it's important to get coverage: you don't know when the luggage on flights from Denver to Albuquerque will get mixed up with the luggage on flights from Los Angeles to Managua and damaged as a result.
You need to quickly tell the airline exactly what the damage to the airline has been. Take pictures of the damage, and give full details of on which flights and which airports the damage occurred. The airline will need to know all of this information in order to process a refund for your items. For example, let them know that you took flights from New York to Orlando, the day on which you travelled, etc. It's important that you tell them quickly because if you leave it for too long then the airline may not give you a refund.
Also ensure that you do not take any compensation on the day from the airline in the form of meal-voucher or a minimal good will gesture that doesn't fully cover the amount. You want to avoid doing this because airlines will then be able to explain that they have compensated you, and your travel insurance may then not pay out either. Calling the travel insurance company with the reference that the airline gave you will enable your refund to be processed quickly.