USPS Insurance: Coverage, Exclusions & How to Claim

USPS insurance reimburses you when a package is lost, damaged or arrives with contents missing. Priority Mail Express, Priority Mail and USPS Ground Advantage include up to $100 of coverage automatically, and you can buy more, up to $5,000 for most mail or up to $50,000 with Registered Mail.

To claim, you file online at USPS.com within 60 days of the mailing date with proof of value and evidence of insurance. This guide covers what’s included by mail class, what USPS won’t pay for, and how the claim and appeal steps work, based on the Domestic Mail Manual (DMM) and USPS’s own pages.

What Is USPS Insurance?

USPS insurance, called indemnity coverage in the DMM, pays you back for loss, damage or missing contents on an insured mailpiece. You get it in two ways: some services include it in the postage, and for other services, or for higher values, you buy Insured Mail as an extra service when you mail the item.

The payout is limited to the item’s actual value or the coverage amount, whichever is lower, and you have to prove the value. Insurance is separate from tracking. A package can show as delivered and still qualify for a claim if the contents arrive damaged or missing.

Which USPS Services Include Insurance?

Three domestic package services include coverage in the price, according to USPS’s Insurance and Extra Services page. The others accept purchased insurance.

DMM 503 sets conditions on the included $100 of coverage. The piece needs an Intelligent Mail package barcode or USPS retail tracking barcode, and Priority Mail pieces without an electronic shipping file need an acceptance scan. Priority Mail Open and Distribute and Premium Forwarding Service pieces don’t get the included coverage.

Some older guides say First-Class Mail can’t be insured. That’s wrong: USPS lists First-Class Mail among the classes eligible for Insured Mail. Books are a common case too, and our USPS Media Mail guide explains why Media Mail shipments need purchased insurance. For Flat Rate boxes, coverage follows the mail class, so a Priority Mail Flat Rate box includes up to $100 of insurance. Our guide to flat rate insurance covers the details.

How Does USPS Insurance Work?

1. Choose coverage when you mail. Rely on the included $100 of coverage, or buy Insured Mail for the item’s value at the Post Office or with an online label. USPS sells retail and online insurance up to $5,000 per piece.
2. Keep your proof. USPS says to keep your postmarked mailing receipt and proof of value, such as a sales receipt, paid invoice or credit card statement.
3. Wait for the claim window if the package is lost. Damage claims can be filed right away. Lost-package claims open 7 days after mailing for Priority Mail Express and 15 days after for most other services.
4. File by day 60. Both lost and damaged claims must be filed no later than 60 days from the mailing date.
5. Keep the item and the box. Hold on to the damaged item and all packaging until the claim is settled, because USPS may ask you to bring them in for inspection.

Items insured for more than $500 get a delivery scan, and USPS sends the mailer a signature as the delivery record. If you want only the addressee to receive it, add Restricted Delivery, which USPS sells with Insured Mail over $500, Certified Mail, Registered Mail, COD or Signature Confirmation. Our guide to USPS Signature Confirmation explains the signature options. Before you rely on coverage, check how to tell if your USPS package has insurance.

What Does USPS Insurance Not Cover?

DMM 609 section 4.3 lists claims USPS won’t pay. Among the most common:

• Prohibited or improperly mailed items: nonmailable, prohibited or restricted items that weren’t prepared and mailed under postal standards.
• Poor packing: for example, scrapes and abrasions on articles that weren’t properly wrapped for protection.
• Perishables that spoil: perishable contents that arrive frozen, melted, spoiled or deteriorated.
• Delay: insurance covers loss and damage, not late delivery. Event tickets, for example, aren’t covered for arriving after the event.
• Cash and negotiable items: indemnity for negotiable items and currency is capped at $15 unless the item is sent by Registered Mail.

Packaging is where most claims succeed or fail, so use a sturdy box, cushion every side and seal it well. Our guides to how to ship books and how to ship baked goods show item-specific packing. Our USPS shipping hub lists the restrictions for other items.

How Much Does USPS Insurance Cost?

USPS insurance is priced in tiers by declared value, so higher values cost more to insure. The current fees are published in USPS Notice 123 (Price List) under Extra Services. Our breakdown of USPS insurance rates and coverage explains how the tiers work.

If you ship often, third-party coverage can be worth comparing. ParcelPath offers Shipsurance coverage on its labels, along with discounts of up to 89% off USPS and up to 85% off UPS, with no subscription or per-label fees. To see what the label itself will cost, compare live USPS and UPS rates in the ParcelPath rate calculator, or use our shipping calculator.

How Do You File a USPS Insurance Claim?

Either the sender or the recipient can file, online at USPS.com/help/claims (the fastest route) or by mail with a Domestic Claim form. You’ll need:

• The tracking or label number
• Evidence of insurance: the original receipt, the outer packaging showing the insured label, or your online label record
• Proof of value: a sales receipt, paid invoice or credit card statement
• For damage claims: clear photos and, if relevant, a repair estimate from a reputable dealer

USPS says it usually decides claims within 5–10 days, and approved claims are typically paid within 7–10 business days. If a claim is denied or only partly paid, you can file a first appeal within 30 days of the decision, then a final appeal to the Consumer Advocate within 30 days if the denial stands. Our guide to USPS claims and support goes into each step, and what happens if USPS loses your package covers the search process before a claim.

Photograph the item before you pack it, then again inside the box and once more sealed with the label showing. Those photos make a damage claim much easier to prove.

Frequently Asked Questions

How much USPS insurance is included with Priority Mail?

Priority Mail includes up to $100 of USPS insurance for loss, damage or missing contents, and so do Priority Mail Express and USPS Ground Advantage. The piece needs a USPS tracking barcode to qualify. You can buy additional Insured Mail coverage up to $5,000 for higher-value items.

Can I add USPS insurance after I’ve mailed a package?

No. USPS insurance has to be bought when you mail the package, either at the Post Office counter or with your online label. Once the package is in the mail, you can’t add coverage, though Priority Mail, Priority Mail Express and Ground Advantage pieces still carry their included $100 of insurance coverage.

How long do I have to file a USPS insurance claim?

You must file no later than 60 days from the mailing date. Damage or missing-contents claims can be filed right away. For a lost package, wait 7 days after mailing for Priority Mail Express or 15 days for most other services before filing a USPS insurance claim.

What happens if my USPS insurance claim is denied?

You can appeal. USPS accepts a first appeal within 30 days of the claim decision, online if you filed online. If that appeal is denied, you have another 30 days to request a final review by the Consumer Advocate. Add any missing proof of value or evidence of damage with each appeal.

Sources

• USPS: Insurance and Extra Services
• USPS: File a Claim
• USPS Domestic Mail Manual 503: Extra Services
• USPS Domestic Mail Manual 609: Filing Indemnity Claims
• USPS Notice 123: Price List