Almost every day, someone at our counter asks the same question while holding a box: “Is this insured?” The honest answer is usually “partly.” Most packages travel with only about $100 of built-in coverage, and the way that coverage works depends on the carrier. At our Notary Newport Beach office, we walk customers through declared value and shipping insurance before anything valuable ships, because the difference matters most after something has already gone wrong.
What is the difference between declared value and shipping insurance?
Declared value is the maximum a carrier agrees to pay if your package is lost or damaged. Shipping insurance is a policy that covers the item, offered by USPS or by an independent insurer.
UPS and FedEx do not sell insurance on their packages. They sell declared value, which raises their limit of liability, meaning the most they are responsible for. FedEx’s published terms say that when you declare a higher value, its maximum liability is the declared value or your actual damages, whichever is less. Declaring $800 on a jacket that sells for $400 will not get you $800.
USPS calls its coverage insurance, and it works in a similar way. You are covered for the actual value of the item, up to the amount you purchased.
How much coverage comes with a package by default?
Most domestic packages include about $100 of coverage unless you add more. According to USPS, Priority Mail Express, Priority Mail and USPS Ground Advantage each include up to $100 of insurance in the price, as long as the package has a USPS tracking barcode.
UPS and FedEx both start with $100 of liability per package when no higher value is declared. If you ship a $900 camera without declaring its value, the most you can typically recover from any of the three carriers is $100.
How much extra coverage can you buy?
USPS sells additional insurance up to $5,000 per package, and Registered Mail can be insured for up to $50,000. UPS and FedEx let you declare much higher values on most services, with a fee based on the amount declared.
The cost is modest compared with the risk. Fees typically run a few dollars for the first several hundred dollars of value, then a small charge for each additional $100. We can quote the exact amount for each carrier at the counter.
Which items have lower coverage limits?
Artwork, jewelry, collectibles and other items with hard-to-measure value often have caps that are much lower than standard limits. FedEx, for example, limits the declared value of works of art, limited-edition prints and collector’s items to $1,000 per package in its published terms. Declaring more than the cap does not raise the carrier’s liability.
Cash, gift cards and some negotiable items may not be covered at all. If you are shipping anything in these categories, ask before you pack.
When does third-party shipping insurance make sense?
Third-party shipping insurance is worth considering when an item is worth more than a carrier’s cap, or when you ship high-value items often. These policies come from independent insurance companies rather than the carrier.
Some homeowner’s and renter’s policies also cover personal property in transit. A quick call to your insurance agent can tell you whether you already have coverage before you pay for more.
Why can a shipping claim be denied?
The most common reason is packaging. Carriers can deny a damage claim if they decide the item was not packed well enough to survive normal handling, and declaring a high value does not change that.
Claims can also stall without proof of value. Keep the receipt, invoice or appraisal for anything you insure. Photograph the item and the packing before sealing the box. If a package arrives damaged, keep the box and all the packing materials, because the carrier may want to inspect them. Each carrier sets its own deadline for filing, so start the claim as soon as you notice the problem.
How does a Notary Newport Beach shipping counter help with coverage?
We compare declared value and insurance costs across carriers for each package and make sure the coverage fits what is inside. Professional packing also strengthens your position if you ever need to file a claim, since inadequate packaging is one of the first things a carrier looks for.
Protect what you ship
Default coverage on most packages stops at $100, declared value is a carrier’s liability limit rather than true insurance, and items like art and jewelry have their own caps. If losing an item would hurt, declare its value or insure it, and keep your paperwork. Bring your package to our Notary Newport Beach location at 2618 San Miguel Drive, and we will help you choose the right carrier and the right level of protection.
