If the contents of your package are worth $100 or less, you already may be covered.
Each domestic UPS parcel is covered automatically up to a value of $100 against loss or damage. FedEx does the same. The U.S. Postal Service, however, only provides an automatic $100 of coverage on Express Mail.
All three carriers offer declared value coverage, not insurance. “A declared value on a package or good represents a carrier’s maximum liability for that package or good in the event of loss or damage,” says Philip Strohl, vice president of business development for uShip.
That means you have to declare the value of your package if it is more than $100. If you do not, the carrier’s maximum liability is $100, even if the parcel is worth $1,000, notes Shmorak.
If you want extra protection for your shipment, you will have to pay for it. In other words, if you declare that your package is worth $100.01, and want that extra 1 cent of protection, you have to declare it and purchase the extra coverage.
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