Shipping Insurance USPS: Simple Guide to Protect Your Packages

When and Why You Need USPS Insurance

USPS automatically covers letters and postcards, but once you move into parcels, the protection stops. If the item is worth more than the standard $100 liability limit, you should consider buying insurance. Even for cheaper items, insurance can be worth it when the replacement cost is high or the item is irreplaceable – think electronics, jewellery, or heirloom pieces.

Another big reason to insure is peace of mind. Knowing you have a claim option makes the whole shipping process less stressful. It also shows the recipient you’ve taken extra steps to ensure safe delivery, which can boost trust in a business setting.

How to Add and Claim USPS Insurance

Adding insurance is easy. When you fill out the shipping label online at usps.com or at a post office, you’ll see an option to purchase insurance. The cost is based on the declared value: roughly $0.55 per $100 of value for most domestic services, with a minimum charge of $2.45. For international shipments, the rate varies by destination.

Make sure you clearly declare the actual value of the item – under‑declaring can lead to a lower payout if you need to claim. Keep the original receipt and any photos of the packed item. If the package is lost or damaged, start the claim within 30 days of the shipment date.

The claim process is straightforward. Go to the USPS website, locate the “File a Claim” section, and upload the required documents: the original receipt, proof of value, and photos showing the damage. USPS will investigate and, if the claim is approved, issue a reimbursement within 15‑30 days.

Tip: Always use a sturdy box, proper cushioning, and seal the package well. Good packaging reduces the likelihood of damage, which can speed up claim approval if something does go wrong.

If you ship regularly, consider a third‑party insurance provider. Companies like Shipsurance or U-PIC often offer lower rates for high‑volume shippers, and they handle claims directly. Compare the cost and coverage terms before deciding which option fits your business best.

Bottom line: USPS shipping insurance is cheap, simple, and gives you a fallback when things don’t go as planned. Add it at checkout, keep your paperwork, and you’ll be ready to claim if needed.