I don't use traveler's... I went and insured my equipment by adding it to my home insurance. I covered it for the full cost of the replacement, at about, let's see... $2200 total value for $36/year ~ 1.6%
This insurance covers it for all perils, lost or stolen. There are exceptions, you may want to check, such as the act of war, using it where prohibited, etc.
There was also another thread here at DPC on insuring your equipment - I'll try to google it and Ill edit this post if I find it.
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