What FedEx Shipping Insurance Doesn’t Cover

When a person decides to make a personal or business shipment using FedEx or FedEx Express, a choice is given to add a level of protection against lost or damaged packages. The expectation is: FedEx Shipping Insurance will help protect your package and ensure its safe and secure delivery.


However, issues can occur within the delivery process which FedEx Insurance will not cover. Even if the insurance covers the items overall, the amount of coverage may be limited, giving you only partial protection should an issue occur.


It is essential to understand FedEx Shipping Insurance and all that is included and excluded in the shipping insurance process.


FedEx Shipping Insurance Basics


According to a consumer reports study, conducted in 2017, FedEx had comparable costs to ship compared to USPS and UPS, often beating the best by a dollar or so.


However, it’s important to keep in mind that just because the cost to ship is better, it does not mean you are getting better insurance coverage.


Shipping Insurance with FedEx is clearly explained on their website. In order to purchase insurance on your shipment, you must declare a value for your package.


Typically, FedEx insures the first $100 of insurance for free. An additional charge would be applied for additional insurance needs on any shipped item.


FedEx Shipping Insurance Costs


As with any type of insurance, the costs to purchase through FedEx for your packages can vary. If you are shipping something through FedEx Same Day or Same Day City, you can declare a maximum value of $2,000 for insurance coverage.


This maximum value applies to all items in the shipment as a total value, not each item individually. Therefore, it may be a good idea to ship higher priced items separately to achieve full coverage. The cost of this coverage is:

  • $300 of coverage for $3
  • Additional $100 of coverage for an additional fee of $1
  • $2,000 of coverage for $20


If you utilize US Express Package Service, US Ground Service, or International Service, there is no maximum declared value for insurance coverage. The costs are the same as outlined above.


Direct Signature Confirmation service, however, does not have a maximum but it does include a minimum. If the item is valued at over $500, there is no cost to cover the item, but FedEx will require a signature from the recipient upon delivery.


FedEx Shipping Insurance Claims


In order to file a claim in the event of a shipping issue resulting from a FedEx shipment, the shipper must contact FedEx Claims. FedEx will supply a claim form for the shipping client to complete. 


Proof of value must be included, such as a receipt for the purchase of the goods lost or damaged. This claim form can be submitted online or mailed in. It may also be brought into a FedEx location.


However, if it is an international claim, the claim must be filed via fax or US Mail. FedEx customer service will supply a claim number for the filer to access updates on the claim. The timeline for filing a claim are as follows:

  • FedEx Express requires claims to be made in 60 days.
  • International claims must be made in 21 days.
  • FedEx Ground claims must be filed within 9 months if damaged and 60 days if lost.


FedEx Shipping Insurance Exclusions


Most FedEx shipments fall into the maximum liability issues described above. However, there are some shipments in which the insurance costs and coverage will not provide full insurance protections.


The following items may exceed the maximum FedEx declared value. In these instances, the declared value may only be up to $1,000, drastically limiting the amount that can be collected should an issue arise:

  • Artwork
  • Jewelry
  • Furs
  • Precious Metals
  • Collectibles
  • Model Dollhouses
  • Antiques


FedEx pack and ship offers FedEx packaging and shipping for individuals to make this process easier. However, an additional fee is charged for this service.


This service documents clearly what products may only receive $1,000 of insurance coverage. Shipping costs will not include the insurance fees. Yet, the insurance fees for any items shipped are the same as detailed above.


Additional Shipping Insurance Coverage


 Even though FedEx Shipping Insurance may only cover products up to $1,000 or $2,000, the shipper has alternative options to make sure the entire package is covered.


In addition, coverages may be covered even if total proof of purchase is not readily available, based on market value.


Cabrella specializes in shipping insurance for valuable shipments. Whether you have several items where the total value exceeds $2,000 or if one item is included on the list of excluded items, Cabrella can help provide affordable shipping insurance options, giving you peace of mind.

Call today to protect your next FedEx shipment.




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