Your baggage is not insured, since there are different insurance conditions for every country and we cannot take all into account (e.g. in Switzerland baggage insurance is often contained in houshold insurances). Please take note of our insurance recommendations.
Please bear in mind that, according to IATA regulations airline companies can only be made reliable for lost luggage in cases of proven intent or gross negligence, which, in practice, is hard to account for. Additionally, reimbursements will be done per kg of lost luggage, and the price/kg is, indeed, very low.