How Much Does USPS Priority Mail Insurance Cover?

The United States Postal Service (USPS) Priority Mail service is a popular option for domestic shipments. This service includes automatic insurance coverage, providing a financial safety net if a package is lost, damaged, or has missing contents during transit.

Standard Coverage and Options for More Protection

Priority Mail shipments generally come with a baseline amount of insurance coverage included in the postage cost. Most Priority Mail and Priority Mail Express services include up to $100 of insurance coverage at no additional charge. This standard coverage helps protect against loss or damage for items shipped within the United States.

For items exceeding the standard coverage amount, additional insurance can be purchased to cover a higher declared value. Senders can acquire supplemental insurance in increments up to a maximum of $5,000 for most Priority Mail services. The cost of this additional insurance varies based on the declared value of the item being shipped.

Purchasing additional coverage is a straightforward process, available both at a local Post Office location or through the USPS website when preparing a shipment. When opting for this extended protection, it is important to accurately declare the value of the package’s contents, as this will determine the maximum reimbursement in the event of a claim. While most Priority Mail insurance caps at $5,000, extremely high-value items, such as those up to $50,000, may be insured through Registered Mail, a separate service offering enhanced security.

What Your Insurance Covers

USPS Priority Mail insurance is designed to cover financial losses stemming from a package being lost, damaged, or having its contents go missing while in transit. This coverage extends to a broad range of items, including merchandise, gifts, and personal belongings. The insurance payout will reflect the actual value of the item at the time of loss or damage, rather than simply the declared value if it exceeds the actual worth.

There are specific circumstances and types of items that are typically excluded from coverage. For example, items that are prohibited from being mailed by USPS regulations, such as hazardous materials, are not eligible for insurance. Proper packaging is also essential; items considered too fragile to withstand normal mail handling, or those not adequately packed to USPS guidelines, may be excluded from coverage if damage occurs. If an item’s fragile nature is deemed to have prevented its safe carriage, regardless of packaging, coverage may be denied.

Certain monetary items, like currency or gift cards, are generally not covered. Additionally, the insurance does not typically cover losses incurred due to delays or inconveniences, focusing instead on physical loss or damage to the contents. While the declared value is important for purchasing coverage, the actual cash value of the item, which may account for depreciation, is what USPS will reimburse if a claim is approved.

How to Submit a Claim

Should a Priority Mail package be lost, damaged, or arrive with missing contents, either the sender or the recipient can initiate an insurance claim. The fastest and most convenient method for filing a domestic claim is online through the USPS website. Alternatively, claims can be filed by mail by requesting a Domestic Claim PS Form from USPS Customer Service.

Specific timeframes apply for filing claims, depending on the nature of the issue. For damaged items or packages with missing contents, a claim can be filed immediately but no later than 60 days from the mailing date. For lost Priority Mail packages, there is a waiting period, and claims generally must be filed between 15 and 60 days from the mailing date. It is important to adhere to these timelines, as waiting too long could result in a denial of the claim.

To support a claim, specific documentation is required. This typically includes proof of insurance, such as the original mailing receipt issued at the time of mailing or a printed electronic online label record. Proof of value is also necessary, which can be a sales receipt, a paid invoice, a credit card billing statement, or printouts of online transactions detailing the item and price. If the package was damaged, evidence of the damage, such as photographs of both the damaged item and its original packaging, will be needed. The tracking number for the shipment is also a required piece of information.

After submission, USPS typically processes claims and provides a decision within 5 to 10 business days. If a claim is approved, payment is usually issued within 7 to 10 business days.