Is Shipping Insurance Worth It?

People hear "it's insured" and think that means whatever it's worth. It means up to $100. If you're sending a $600 laptop with no extra coverage and it disappears, $100 is the most the carrier owes you.

The FedEx part confuses a lot of people. FedEx calls it "declared value," and it isn't the same thing as insurance. It's the most FedEx will pay if it's their fault, and they pay the lesser of the repair cost, the replacement cost or the depreciated value. For some categories like jewelry, artwork and antiques, FedEx caps what it will pay no matter what you declare.

Here's how we explain it at the counter. Ask yourself one thing: if this box never shows up, how bad is that? If the answer is "annoying," skip it. If the answer is "I'd be out a lot of money" or "I can't get another one," add coverage.

A few situations where we always suggest it:

• Anything going to Mexico, Central or South America. More hands touch an international box, and it's in transit longer.
• Anything you sold online. If it doesn't arrive, the buyer wants a refund and you're the one out the money.
• Anything fragile you packed yourself. Read the next section first.
• Holiday season. Carriers are at their busiest, and boxes get handled faster and stacked higher.

Any delivery date the carrier gives is an estimate, not a guarantee. Insurance covers loss and damage. It doesn't pay out because a box showed up late.

This is the part nobody reads until it's too late. The standard a claim is judged against is simple: would the box, packed the way it was, have survived a drop of about 4 feet? That's a box sliding off a conveyor or a truck shelf. It happens every day.

So a glass vase wrapped in one sheet of newspaper and dropped into a box twice its size isn't covered, even with insurance on it. The insurance paid for itself only if the packing did its job too.

That's the best reason to have us pack it. We pack fragile items every day, we do every kind of fragile packing, and our boxes are made specifically for shipping. Bring the item in unwrapped and we'll pack it to hold up to that drop. Packing is a paid service, and it's the part that makes the insurance actually count.

If you want to pack it yourself, use a new box, at least 2 inches of cushioning on every side, and make sure nothing moves when you shake it.

We know. Phones are exactly what people want to insure. The coverage we offer at the counter doesn't include them, and we'd rather tell you now than after a claim.

If you're shipping a phone, pack it well and use a service with tracking. Before it goes in the box, take a photo of it powered on, plus one of the serial number. For shipping a phone with the battery inside, see what you can't ship.

Not sure about your item? Call us at 732-730-5230 and ask before you come in.

The 48 hours is the part people miss. The clock starts when you or the person you shipped to finds out, not when the box was shipped. If the box shows up crushed, report it that day.

What a claim needs:

• Proof of value. A receipt, an invoice, or the listing it sold on.
• Photos. Of the damaged item, the box it came in, and the packing inside. Don't throw anything away until the claim is closed.
• Your shipping receipt with the tracking number.

The strongest thing you can do is take a photo of the item and the packed box before you hand it over. Use your phone right at the counter before we seal it. If you ever need to file, that photo shows what it looked like when it left.

If the box is marked delivered but isn't there, check with neighbors and around the property first, then report it. Come see us with your receipt and we'll go through the claim with you.

We see this a lot. Someone drops off a prepaid label for something expensive and asks if it's covered. On its own, it's covered for whatever the label came with, usually $100 at most.

So next time, bring the item in first. We'll measure it, check what it would cost with FedEx and USPS, add coverage if you want it, and pack it if it needs it. For more on getting the box size right before you ship, see how we cut your box down to save on shipping.