Mailing insurance
Mailing insurance is a financial product that reimburses senders for loss, theft, or damage of mailed items during transit. USPS, FedEx, and UPS offer mailing insurance policies covering packages up to $5,000 in value.
Customers purchase mailing insurance at the time of shipment by declaring item value and paying a premium based on declared worth. Mailing insurance covers events like lost parcels (e.g. misrouted electronics), damaged goods (e.g. shattered glassware), and stolen shipments (e.g. missing jewelry).
Exclusions include prohibited items such as cash, hazardous materials, or perishable foods; these are not insurable under standard mailing insurance terms. Filing a claim requires proof of value–such as receipts–and evidence of loss or damage within 60 days for USPS claims.
Premiums range from $2.70 for coverage up to $100 to over $50 for maximum coverage with major carriers, as presented by the Insurance Information Database. Mailing insurance differs from shipping guarantees because it compensates only if the package suffers physical loss or damage–not just late delivery.
Businesses use mailing insurance frequently when sending high-value merchandise like smartphones or designer handbags to mitigate financial risk from transit mishaps.
Does first-class mail have insurance?
Yes, first-class mail does have insurance. The United States Postal Service (USPS) provides the option for customers to purchase additional insurance for their First-Class Mail items. The coverage offered may vary according to item value, weight, size and destination type. Some services such as Certified Mail and Priority Mail Express also include up to $100…
See also Mailing tips, and Mailing insurance costs.