USPS Package Insurance: What You Need to Know

Shipping a valuable item? You probably want to know if it’s safe in transit. USPS offers a simple insurance add‑on that lets you protect packages up to $5,000. It’s not a mystery – you just pay a small fee based on the item’s value and you’re covered if something goes wrong.

How USPS Insurance Works

When you add insurance at the post office or online, USPS records the declared value. If the package is lost, damaged, or arrives with missing parts, you can file a claim for the amount you insured. The carrier will reimburse you up to the declared value, minus any deductible that might apply.

Insurance only applies to the services that allow it – First‑Class Package, Priority Mail, Priority Mail Express, and certain international services. It doesn’t cover standard letters or flat‑rate envelopes unless you specifically add coverage.

Tips to Save on Insurance

Start by checking the actual value of your item. Over‑insuring adds unnecessary cost. USPS charges $0.25 per $100 of declared value, with a minimum of $2.00. For a $250 item, you’ll pay just $2.50. Keep the cost low by bundling multiple low‑value items in one box if they’re going to the same address.

Use the USPS online tools to calculate insurance before you head to the counter. The website shows exact fees, so you won’t be surprised by a cash register total. If you ship regularly, consider a business account – many offer discounted insurance rates.

When a problem occurs, act fast. File a claim within 60 days of the delivery date (or the date the package was marked as delivered). Gather proof like receipts, photos of the damaged goods, and the tracking number. The more documentation you provide, the smoother the reimbursement process.Finally, remember that insurance is not a cure‑all. Package preparation matters. Use sturdy boxes, proper padding, and seal everything tightly. A well‑packed parcel reduces the chance of damage, which means you might not need to claim at all.

By understanding how USPS insurance works, calculating the exact cost, and following these practical steps, you can ship valuable items with confidence and without paying more than you have to.