UPS Declared Value: Understanding Insurance and Coverage
Learn how UPS declared value works for package protection. Understand coverage limits, costs, and when to add extra insurance.
UPS Declared Value: Package Protection Guide
UPS declared value is not insurance—it's liability coverage. Understanding the difference can save you money and protect your shipments.
What is Declared Value?
| Concept | Meaning |
|---|---|
| Declared Value | UPS's liability limit |
| Insurance | Third-party protection |
| Default Coverage | $100 included |
| Maximum | $50,000 per package |
Declared Value Costs
| Coverage Amount | Additional Cost |
|---|---|
| $100 (default) | Included |
| $101 - $300 | $3.45 |
| $301 - $500 | $4.25 |
| $501 - $1,000 | $5.95 |
| $1,001 - $2,000 | $9.95 |
| $2,001 - $5,000 | $14.95 |
Declared Value vs Insurance
| Feature | Declared Value | Third-Party Insurance |
|---|---|---|
| Provider | UPS | Insurance company |
| Coverage type | Liability | True insurance |
| Claim process | Through UPS | Through insurer |
| Payout speed | 5-10 days | Varies |
| Cost | Per UPS schedule | Often cheaper |
When Default Coverage is Enough
| Scenario | $100 Sufficient? |
|---|---|
| Books, clothing | Yes |
| Low-value items | Yes |
| Replaceable goods | Yes |
| Electronics | No |
| Jewelry | No |
How to Add Declared Value
With atoship:
Filing a Claim
Required Documentation:
| Document | Purpose |
|---|---|
| Tracking number | Identify shipment |
| Invoice/receipt | Prove value |
| Photos | Show damage |
| Packaging photos | Prove proper packing |
| Stage | Timeframe |
|---|---|
| File claim | Within 60 days |
| Investigation | 5-10 business days |
| Resolution | Additional 5 days |
| Payment | 3-5 days after approval |
Excluded Items
UPS won't cover certain items regardless of declared value:
| Category | Examples |
|---|---|
| Currency | Cash, coins |
| Precious metals | Gold bars, silver |
| Negotiable documents | Bonds, checks |
| Antiques | One-of-a-kind items |
| Irreplaceable items | Manuscripts, heirlooms |
Pro Tips for Coverage
1. Keep Receipts
Original purchase receipts are best proof of value.
2. Document Packaging
Take photos of packing process for high-value items.
3. Consider Third-Party
For items over $1,000, third-party insurance often cheaper.
4. Declare Accurately
Over-declaring = higher cost. Under-declaring = limited recovery.
High-Value Shipment Strategy
| Value Range | Strategy |
|---|---|
| Under $100 | Default coverage |
| $100-$500 | UPS declared value |
| $500-$2,000 | Compare UPS vs third-party |
| $2,000+ | Third-party insurance recommended |
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