Declared value
Declared value: The value a shipper states for a package to raise the carrier's limit of liability above its default, for an extra fee. UPS and FedEx say declared value is not insurance.
How does it work?
UPS and FedEx both limit their liability to $100 per package unless you declare a higher value and pay an additional charge. The declared value becomes the most the carrier will pay if it loses or damages the package, and you usually need to show the carrier was at fault.
Is declared value insurance?
No. UPS’s terms say a declared value is not insurance, and FedEx states it does not provide insurance of any kind. Declared value raises the carrier’s liability for its own failures; it does not cover theft after a package is scanned as delivered.
Example
A store ships a $350 jacket with UPS and declares $350. If UPS loses it, the store can claim up to $350 instead of $100.
Compare declared value with protection in our shipping insurance guide and the shipping protection guide. See also Sam Shipping Protection.
Learn more: Shipping insurance guide → · Carrier liability · Shipping insurance