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Topic: Is mailing INSURANCE worth it?

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Subject: Is mailing INSURANCE worth it?
Date Posted: 10/11/2013 9:48 AM ET
Member Since: 10/30/2010
Posts: 495
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One Postmaster told me it is very difficult to get your money back if the package is insured. Is this correct? 

What, exactly, do you need to prove the value of the item inside the package?

 

greg

 

Date Posted: 10/11/2013 10:58 AM ET
Member Since: 5/25/2009
Posts: 602
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Definitely not worth it for a PBS transaction. If you are shipping other stuff, Priority Mail now includes $50 of free insurance. Whether or not insurance is worth it beyond that depends on a lot of factors.I haven't had to file a claim yet, but I always buy it now on anything valuable that is incoming after my last crappy PO started misplacing a lot of my packages. 

Date Posted: 10/11/2013 11:03 AM ET
Member Since: 7/30/2007
Posts: 4,275
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yes, it is a huge hassle to collect on insurance.

First, only the mailer can file and collect any money

Second, you need to prove the worth of the item(s). They aren't going to just take your word for it, you need a receipt of purchase, like a finalized paypal receipt for things bought on ebay, or even a catalog page for a similar item. The items will be researched and price verified

Third, you have to take the package and all packing material into the post office if you are claiming damage, and if it's not packaged properly, per the DMM ( like the proper paperweight of the cardboard, or if it has inadequate padding) you can not collect on the insurance.

Fourth, if its a claim for loss, you have to wait (iirc- 60 or 90 days) to see if it has just been "delayed" 

If you are someone who ships quite a bit, you can buy 3rd party insurance (U-PIC is one) The post office or sender cant tell that it is insured and the claims are a lot easier-but if you start having a lot of claims, they can raise your premium

 

Date Posted: 10/11/2013 12:13 PM ET
Member Since: 10/30/2010
Posts: 495
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Good info, especially Brandy. I DO send a LOT of stuff at auctions, but most of the stuff is not very expensive. This morning I sent a $50 item, so I thought it might be good to get insurance (not because i've had serious problems with my P.O., just the opposite, except for the $100 pair of running shoes that mysteriously poofed at my own P.O. before it went anywhere else). So, I noticed that I could buy insurance via Paypal labels and I did  at a cost of $2.00 for $50 coverage, but then my smart wife said, "How will you PROVE what you paid for it?" 

I dont know how I would prove it. I feel like I just wasted $2.00. and that Sucks.

greg

Date Posted: 10/11/2013 8:31 PM ET
Member Since: 5/25/2009
Posts: 602
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I think in that case you would only have to prove that the buyer paid you $50 for the item. 

Date Posted: 10/11/2013 8:32 PM ET
Member Since: 5/25/2009
Posts: 602
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FWIW I think the process may be getting easier? A friend sold a bunch of makeup, and despite her extremely careful bubble wrapping and packaging, some of it arrived damaged. I know that most of the people who received the damaged products were able to collect on the insurance if they had opted for it. 

Date Posted: 10/17/2013 7:21 AM ET
Member Since: 9/30/2005
Posts: 513
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I've had to file several claims for things I've received from eBay auctions and I've never had a problem as the buyer filing the insurance claim and getting my money back.  I've just gone online and filled out the claim form using information from the mailing label and I think I had to get some piece of info from the mailer but it's been a while so I can't remember exactly.  I also submit pictures of the box/damaged item and the eBay invoice.  I don't think it took more than a week to get my money back.

Third, you have to take the package and all packing material into the post office if you are claiming damage, and if it's not packaged properly, per the DMM ( like the proper paperweight of the cardboard, or if it has inadequate padding) you can not collect on the insurance.

If you file online you don't have to take anything to the post office, at least I've never had to do it.  Also one of my claims was for a box of glass that was completely shattered due to inadequate padding and they paid the claim.  I provided pictures of the box, packing, and glass so they knew what it all looked like.

Greg, Becca is right, all you or the buyer needs for proof of value is the invoice showing what they paid.  I sell on eBay and even though I tend to overwrap my packages I always insure them.

Date Posted: 10/26/2013 8:09 AM ET
Member Since: 10/30/2010
Posts: 495
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Thanks for the input!  This helps a lot.

 

greg