USPS Insurance Claims: Step-by-Step Filing Guide

USPS pays out roughly 100 million dollars in insurance claims every year, but they reject 30 to 40 percent of the claims they receive. The most common reason for rejection is not that the claim is illegitimate — it is that the shipper did not provide adequate proof of value or sufficient evidence of damage. Filing a claim correctly the first time is the difference between getting paid in five to ten business days and entering a months-long appeals process that you may still lose.

What USPS Insurance Covers

Most USPS services include a base level of insurance at no extra cost. Priority Mail, Priority Mail Express, Ground Advantage, and Parcel Select Ground all come with 100 dollars of included coverage. First-Class Package Service, Media Mail, and Library Mail include no insurance — if a package shipped via one of these services is lost or damaged, you have no claim unless you purchased additional coverage at the time of shipping.

You can purchase additional insurance for most services up to 5,000 dollars (higher for Registered Mail). The cost is modest — roughly 2.35 dollars for coverage up to 50 dollars, 3.10 dollars for up to 100 dollars, and about 0.95 dollars per additional 100 dollars of coverage above that. For a 500-dollar item, full insurance costs roughly 6.70 dollars. On a high-value shipment, this is cheap protection.

The critical point: you must purchase insurance before shipping. You cannot add insurance after the fact. If your 300-dollar product ships with only the included 100 dollars of coverage and gets lost, you can only claim 100 dollars regardless of the actual value.

When and How to File

You can file a claim when a package is lost (no tracking updates for a sustained period), damaged during transit, or the contents are missing. The filing window depends on the situation.

For damaged or missing contents, you can file immediately upon receipt — there is no waiting period. For lost packages shipped via Priority Mail, Ground Advantage, or Parcel Select Ground, you must wait at least 15 days from the shipping date (and can file up to 60 days after). For Priority Mail Express, you can file after 7 days. USPS needs time to search their system before accepting that a package is truly lost.

All claims must be filed within 60 days of the shipping date, with the exception of Registered Mail, which has a longer window. Missing this deadline means your claim is automatically rejected regardless of merit.

Filing Online vs In-Person

File online through the USPS claims portal at usps.com/help/claims.htm. The online process is faster, creates a documented record of your submission, and allows you to upload evidence digitally. You need a USPS.com account, the tracking number, proof of insurance (your shipping receipt or label), proof of value, and evidence of damage or loss.

You can also file in person at a post office, but this is slower and less reliable — the clerk fills out a paper form that gets mailed to the claims processing center, adding days to the timeline.

The Evidence That Makes or Breaks Your Claim

This is where most claims fail. USPS requires specific documentation, and submitting incomplete evidence is the fastest way to get rejected.

For proof of value, USPS accepts the original purchase receipt or invoice, a screenshot of the product listing at the time of sale showing the selling price, PayPal or payment processor transaction records showing the amount paid, or an appraisal for unique or handmade items. The documentation must show the specific item that was shipped, not a generic product listing for something similar.

For damaged items, take photographs of the damaged item from multiple angles showing the specific damage, the packaging including the box exterior showing any visible crushing or puncture damage, and the interior packaging showing how the item was cushioned. Keep the packaging and the damaged item — USPS may request to inspect them, and throwing them away before the claim is resolved is grounds for denial.

For lost packages, the tracking information showing no delivery confirmation is usually sufficient. USPS will conduct an internal search, and if they cannot locate the package, the claim proceeds.

How Long Claims Take

Standard processing time is five to ten business days for straightforward claims with complete documentation. Complex claims or claims requiring additional documentation can take 30 to 60 days. Priority Mail Express claims are generally processed faster due to the service commitment associated with that product.

If your claim is approved, USPS issues payment via check mailed to the address on file or electronic transfer if you have set up direct deposit through their claims system. The payment covers the lesser of the insured amount or the actual value of the item, plus the shipping cost if the entire shipment was lost.

Handling Denials

If your claim is denied, you have 30 days to file an appeal with additional evidence. Common denial reasons include insufficient proof of value (fix by submitting additional documentation like invoices, receipts, or screenshots), inadequate evidence of damage (fix by submitting additional photos), filing outside the eligible window (generally not appealable), and insurance not purchased (also not appealable).

The appeal process adds another 30 to 60 days to the timeline. If the appeal is denied, your final recourse is to file a claim with the Consumer Advocate through USPS.

For E-commerce Sellers

Proactive sellers build insurance claim readiness into their shipping process. Photograph high-value items and their packaging before sealing the box. Save screenshots of the product listing and the transaction receipt for every order that includes insurance. Use shipping labels that clearly show the insured value.

Platforms like atoship track insurance coverage alongside shipment details and can help you identify which shipments are insured and for how much, making it easier to file claims quickly when damage or loss occurs.