The United States Postal Service (USPS) is an independent federal agency responsible for providing you with domestic and international postal services. It is accountable for delivering express mail to every mailbox in the country.
Knowing the importance of your mail, they understand the need to offer insurance services to avoid complications during shipping. However, before purchasing any additional assistance, you should see the price, features, and benefits.
The value of insurance available with USPS
Before considering the purchase of shipping insurance, you should know the prices and the cost-effectiveness of having one. Although the fee is usually minimal, you should see if it is worth it according to the risks and costs when discussing heavy or large packages.
To begin with, the value of USPS insurance varies according to the declared value of the package shipped. The declared value is the price of the contents of the box; you must notify this to be able to file a claim when necessary.
Depending on the package, the insurance prices are higher or lower; the prices can be established for the postal service that does not have insurance at no cost, then you will be paying the entire bill. If so, the prices would be:
- For a value up to $50, it is $1.65
- For $50.01 to $100, it is $2.05
- For $100.01 to $200, it is $2.45
- For 200.01 to $300, it is $4.60
- The price for each additional $100 of insurance, valued between $300 and $5,000, is $4.60 plus $0.90 for each $100 or fraction thereof
If you opt for USPS services such as Express Mail, you can enjoy freely the first $100 of coverage. When you purchase additional insurance, the prices will include:
- First $100 of value
- For a value over $100 up to $200, it is $0.75
- For $200.01 to $500, it is $2.10
- For $500.01 to $5,000, it is $2.10 plus $1.35 for every $100 or fraction thereof
The recommendation will always be to purchase insurance; this is the most important step to ensure that the shipping company will be responsible for losses. They are usually careful with packages, so there will be a few times that you will have to resort to insurance.
Maximum insurance for USPS
USPS insurance coverage can be up to $5,000 for standard mail and applies to standard mail sent at the First-Class Mail or Priority Mail rate. When the item you send is valued at more than $50, you must sign the delivery receipt for your records at the delivery post office.
One of the suppliers’ recommendations is not to add insurance for a higher value than the value of your product; f it is lost or suffers an accident, the insurance will cover only the actual value minus depreciation. Before proceeding with the insurance, it is essential to consider two important points:
Insurance coverage for express mail
You can have Priority Mail insurance coverage against damage, loss, or missing contents, but it has certain terms and conditions:
- Insurance coverage for Priority Mail Express Open & Distribute ends the moment it arrives at the destination postal facility
- Mail you have signed for as express is considered an accurate delivery and does not require indemnification for loss
- Insurance coverage for damaged goods, loss, or missing contents is limited to $100.00
- You can make claims online for insured priority express mail
Insurance Coverage for Priority Mail
When priority mail has an Intelligent Mail Package Barcode (IMpb) or USPS retail tracking code, they can be insured against damage, missing contents, or loss for a maximum of between $50.00 and $100.00, provided you meet the following:
- The maximum liability for loss, damage, or missing contents is $100 when your product has a smart mail package barcode and if you have paid commercial prices
- When they are products with IMpb or USPS retail tracking barcodes, the limit you may claim for damage, loss, or missing contents is $50
- In addition to the above coverages, you may purchase additional Priority Mail insurance with a maximum range of $5000
- All qualifying products must have full acceptance scanning to qualify for automatic insurance coverage
Is USPS insurance worth it?
Of course, insurance will respond to any damage or loss of your package. However, before purchasing coverage, you should evaluate whether it is sufficient for your shipping.
The agency is responsible for packages most of the time without insurance. However, it is good to be cautious.