You have the option to safeguard your packages from potential loss or damage while they're being shipped by getting insurance through the shipping service or an outside insurance company. Whether you choose to insure your package or not really comes down to how much the package is worth to you and if you're okay with the chance of it getting lost or damaged without any compensation.
Standard Insurance provided by carriers:
UPS and FedEx automatically insure every domestic package up to $100 for any loss or damage. For the U.S. Postal Service, this $100 automatic coverage is exclusive to Express Mail. Therefore, if your package is valued at under $100, additional insurance might not be necessary.
USPS Ground Advantage™, Priority Mail Express®, and Priority Mail® services include up to $100 of insurance in the price. For more valuable shipments, additional coverage is usually available.
For the most up-to-date information, please review each carrier's insurance policy
United States Postal Service (USPS)
Exceptions to Insurance Coverage
Certain items, destinations, and high-value goods may be exempt from insurance coverage. Be particularly cautious with high-value but small items like jewelry, electronics, or luxury goods, and always scrutinize the insurance policy details.
Insurance for international shipping
For international deliveries, carriers like the USPS will transfer your package to the postal service of the destination country, such as Canada Post for shipments to Canada. Given the increased risk of loss or tracking errors during these handoffs, insuring your international packages is generally a wise decision.
Determining the Insurance Value:
It's best to insure your items based on their replacement cost. Since the insurance payout won't exceed the item's current market value, insuring beyond the standard retail price could lead to unnecessary extra charges.