I honestly do not remember the federal details, but every airline does have a policy you need to review in regards to what they will do and not do or cover and the amount of time they promise to rectify the issue. Here is the two links that cover what you are asking for from our GOV:
https://www.transportation.gov/airconsumer/baggage
https://www.transportation.gov/airconsumer/fly-rights
To quote the site:
Limits on liability
Airlines assert a limit on their liability for delayed, lost or damaged checked baggage. When your luggage and its contents are worth more than the liability limit, you may want to purchase "excess valuation," if available, from the airline as you check in. This is not insurance, but it will increase the carrier's potential liability. The airline may refuse to sell excess valuation on some items that are especially valuable or breakable, such as antiques, musical instruments, jewelry, manuscripts, negotiable securities and cash.
On domestic trips, the airline can invoke a liability ceiling that is regulated by DOT and that is adjusted for inflation every two years. That limit is currently $3,500 per passenger.
On international round trips that originate in the United States, the liability limit is set by a treaty called the Montreal Convention. This treaty also governs liability on international round trips that originate in another country that has ratified this Convention, and one-way trips between the U.S. and such a country. This international limit is adjusted for inflation every five years; it is currently 1,131 Special Drawing Rights. The SDR is a currency surrogate that floats daily; go to www.imf.org[external link] to see the current value in dollars. At this writing 1,131 SDRs was worth about $1,675. The international limit applies to domestic segments of an international journey. This is the case even if the domestic and international flights are on separate tickets and you claim and re-check your bag between the two flights.
Keep in mind that the liability limits are maximums. If the depreciated value of your property is worth less than the liability limit, this lower amount is what you will be offered. If the airline's settlement doesn't fully reimburse your loss, check your homeowner's or renter's insurance; it sometimes covers losses away from the residence. Some credit card companies and travel agencies offer optional or even automatic supplemental baggage coverage. Special liability requirements apply to the domestic transportation of assistive devices used by passengers with disabilities. See the publication New Horizons: Information for the Air Traveler with a Disability.