Q: How do you add insurance to a FedEx shipment? A: You add insurance by declaring your package’s value on the shipping form when creating your shipment. FedEx includes $100 of coverage at no extra charge, but packages worth more than $100 require additional declared value coverage starting at $3.90 for values up to $300 as of 2026.
FedEx processes over 15 million packages daily worldwide, with up to 11% of shipments experiencing some form of damage during transit. Understanding how to properly protect your valuable items through FedEx insurance — which functions as their version of shipping insurance — is essential for any business or individual shipping items worth more than $100.
This comprehensive guide covers everything you need to know about adding protection to your FedEx shipments, including current 2026 rates, coverage limitations, and when to consider third-party alternatives.
What Is FedEx Declared Value Coverage?
FedEx declared value coverage provides financial protection for packages that are lost, stolen, or damaged during transit. However, it’s important to understand that FedEx does not actually provide insurance coverage — instead, they offer “declared value” protection with specific limitations.
Every FedEx shipment automatically includes $100 of declared value coverage at no additional charge. This means packages worth $100 or less receive basic protection without requiring extra fees or paperwork.
For shipments exceeding $100 in value, you must purchase additional declared value coverage to protect the full worth of your package. The coverage amount you declare represents the maximum FedEx will reimburse if your shipment is lost or damaged beyond repair.
Key differences between declared value and traditional insurance:
- FedEx only pays if they are proven at fault for the loss or damage
- Coverage is limited to the actual value of the item, not replacement cost
- Certain high-value items have maximum coverage limits regardless of declared value
- Claims require proof of FedEx negligence, not just proof of damage
How Much Does FedEx Insurance Cost in 2026?
FedEx declared value pricing varies by service type and package value, with rates that increased an average of 5.9% in January 2026. Here are the current rates for additional coverage beyond the included $100:
| Service Type | Coverage Amount | Cost |
|---|---|---|
| Express Services | First $300 | Check current FedEx rate |
| Express Services | Each $100 over $300 | Check current FedEx rate |
| Ground Services | First $300 | Check current FedEx rate |
| Ground Services | Each $100 over $300 | Check current FedEx rate |
| SameDay/SameDay City | First $300 | Check current FedEx rate |
| SameDay/SameDay City | Each $100 over $300 | Check current FedEx rate |
| Express Freight | Per $100 of value | Check current FedEx rate |
For example, if you’re shipping a high-value laptop (see current FedEx pricing) via FedEx Ground, you would pay $3.90 for the first $300 of additional coverage (beyond the included $100), plus $2.00 for the remaining $200 of value, totaling $5.90 in declared value fees.
Maximum declared value limits by service:
- Express services (Overnight, 2Day, 3Day): $50,000 per shipment
- Ground and SameDay services: $2,000 per shipment
- Envelopes and Paks: $500 maximum
How Do You Add Declared Value to Your FedEx Shipment?
Adding declared value protection to your FedEx package is straightforward whether you ship online or at a FedEx location. The process involves accurately declaring your package’s value and paying the appropriate fees.
Step 1: Determine Your Package Value
Calculate the total value of all items in your package. This should represent the actual cost to replace the items, not their retail price or sentimental value. Keep receipts or invoices as proof of value.
Step 2: Complete the Shipping Form
When creating your shipment (online or at a FedEx location), locate the “Declared Value” or “Package Value” section. Enter the total value of your package contents in this field.
Step 3: Review Coverage Options
FedEx will calculate the additional declared value fee based on your package’s worth and selected service. Review whether FedEx packages are automatically insured to understand what’s already included.
FAQ: How to Add Insurance to FedEx Shipment
How much does FedEx insurance cost in 2026?
FedEx declared value costs $3.90 for the first $300 of additional coverage beyond the included $100, then $1.00 for each additional $100 of value. These rates increased 5.9% in January 2026.
Does FedEx automatically insure packages?
FedEx includes $100 of declared value coverage with every shipment at no extra charge. However, this is not traditional insurance — it only covers losses when FedEx is proven at fault.
What’s the maximum declared value for FedEx shipments?
Maximum declared value limits are $50,000 for Express services, $2,000 for Ground and SameDay services, and $500 for envelopes and Paks as of 2026.
How long do I have to file a FedEx insurance claim?
You must report concealed damage within 14 days of delivery, note visible damage on the delivery receipt, and wait 7 business days before filing lost package claims.
What items cannot be covered by FedEx declared value?
FedEx excludes currency, hazardous materials, items with fluctuating market values, intangible property, and improperly packaged items from declared value coverage.
Is third-party shipping insurance better than FedEx coverage?
Third-party insurance often provides superior protection with no-fault coverage, replacement cost coverage, and broader item protection, typically costing 0.5% to 4% of item value.
How do I add declared value when shipping with FedEx?
Enter your package’s total value in the “Declared Value” section of the shipping form when creating your shipment online or at a FedEx location, then pay the calculated additional coverage fee. Delivery Speeds and Services
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“Insurance” on FedEx Is Really Declared Value
FedEx does not technically sell insurance in the way an insurer does — what you add is a declared value, which sets the maximum amount FedEx will pay if the parcel is lost or damaged and is subject to FedEx’s liability terms. Every FedEx shipment already carries a baseline liability (a default declared value included at no charge). Raising the declared value above that baseline increases the carrier’s maximum liability and adds a fee scaled to the value you declare. The practical takeaway: you are not buying an insurance policy, you are raising a liability ceiling, and FedEx’s conditions on what is covered and excluded still apply.
Where to Enter Declared Value When Creating the Label
Declared value is entered at label creation. In FedEx Ship Manager (online) or on the air waybill, there is a declared-value field where you enter the item’s value in the shipment details before you pay for the label — it cannot be reliably added after the fact. Enter the actual replacement value of the contents, not an inflated number, because a claim requires documentation (receipt, invoice, or proof of value) and FedEx pays the substantiated value up to what you declared, not the number itself. For a shipment tendered on a business account, the declared-value charge appears as a line item on the invoice.
What Declared Value Won’t Cover — Read the Exclusions
FedEx caps or excludes liability on specific categories regardless of what you declare: certain high-value items (jewelry, precious metals, fine art, collectibles, and similar) carry a much lower maximum liability or are excluded, and inadequate packaging is a common reason a damage claim is denied. This is the trap shippers fall into — declaring a high value on an item FedEx will not fully cover, or on a parcel packed too poorly to survive normal handling. Before relying on declared value for something valuable or fragile, confirm the item is not in a restricted category and pack it to the carrier’s standards, or the declared value buys less protection than the fee suggests.
When Third-Party Coverage Beats Raising Declared Value
For genuinely high-value or excluded items, independent third-party shipping insurers often cover more, for less, and with fewer packaging-based denials than raising a carrier’s declared value. This matters when carrier liability is capped below your item’s worth, or when you ship valuables regularly enough that a standalone policy is cheaper than per-parcel declared value. ParcelPath issues USPS and UPS labels rather than FedEx, and the same principle carries across carriers: for ordinary parcels the carrier’s included and add-on declared value is fine, but for high-value goods, compare the carrier’s declared-value cost and exclusions against a dedicated insurer before deciding.
Part of our FedEx Insurance guide. Related: FedEx Shipping Delays, Why Is FedEx So Slow, FedEx Delivered to Wrong Address.
