The response to my stolen ipod was that it is not covered under their policy. When I called they said I could always try taking them to court. The specifics below:
On June 20, 2009 I arrived at the airport in Los Cabos to take Continental flight 1453 to Houston. When I arrived at the Continental check in desk, the agent asked to check my bags. I set my 2 bags on the table and the agent inspected the bags, zipped them back up and then handed them to another agent who was standing behind her. The agent took my bags and walked me to the check in kiosk. While I was using the kiosk the agent took both bags behind the counter and put both of my bags on the conveyor belt to be loaded on the plane and told me that there would be a $25 charge for the second bag. I quickly told him that the small bag was a carryon and that I did not want it loaded on the plane. The agent said that because it had already been inspected that it could not be carried on. I then told him that if I could not carryon the bag that I would need to get several items out of the bag. The agent told me that because the bag had already been inspected and now behind the counter that I could not remove or add any items. I tried to explain to him that there must be a misunderstanding and that I was ok if the bag could not be carried on but that I really needed to remove several valuable items. He apologized for the confusion but said that there was nothing he could do once the bag was inspected and now behind the counter.
When I arrived in Houston I immediately inspected the bag after removing it from the baggage claim carrousel and discovered that my iPod touch was missing.
I would have never packed any valuable items in luggage that was not a carryon. I had no choice in this matter and was not allowed any opportunity to remove any valuable items. There was obviously a big misunderstanding between myself and the Continental agent in Los Cabos.