Many shippers contact us with questions about shipping insurance. To start, FedEx does not offer shipping insurance. FedEx offers additional declared value. So let’s get a better idea of the rules for FedEx declared value.
No shipping insurance??
FedEx specifically states in the service guide that FedEx DOES NOT provide insurance coverage. They encourage shippers to transfer the risk to an insurance carrier in fact. FedEx can impose that shipments having a declared value of $500 or greater may not be released without a signature even where the release is authorized. The declared value cannot be greater than the declared value for customs.
You may transfer this risk to an insurance carrier of your choice through the purchase of an insurance policy. Contact an insurance agent or broker if you desire insurance coverage. WE DO NOT PROVIDE INSURANCE COVERAGE OF ANY KIND.2019 FedEx Service Guide
FedEx Maximum Declared Values
- (First, Priority, or Standard) Overnight, 2Day & A.M. or Express Saver: maximum declared value per shipment is $50,000.
- FedEx Ground and FedEx SameDay: the maximum declared value per shipment is $2,000.
- First Overnight, FedEx 1Day, 2Day or 3Day Freight: the maximum declared value per shipment is $50,000.
- The maximum declared value for any FedEx Envelope or FedEx Pak is $500.
FedEx Declared Value Cost
When you use FedEx declared value, the cost is based on the value of the item. For the first $100 of value, coverage is free so you pay no additional fees. Many shippers are not aware of this. In the case that the declared value is even one penny over $100, the cost is a minimum of $3 up to a value of $300.
In addition, if the declared value is over $300, the cost will increase by $1 per $100 of declared value. For example, if your shipment is worth $301 to $399, the cost will be $4 total for the FedEx declared value fee. The cost is the same for a package with a value of $305 or $395.
FedEx Declared Value $1000 Limitations
Individual packages with the following items are limited to a maximum declared value of $1,000:
- Artwork, paintings, drawings, vases, tapestries, limited-edition prints, fine art, statuary, sculpture and collector’s items
- Any film, photographic images, negatives, chromes, and slides
- Any commodity inherently susceptible to damage or the market value is variable or difficult to ascertain
- Antiques, furniture, tableware, and glassware
- Plasma screens
- Precious metals (gold, silver or platinum)
- Stocks, bonds, cash letters or cash equivalents (food stamps, postage stamps, traveler’s checks, lottery tickets, money orders, gift cards and gift certificates, prepaid calling cards)
- Collector’s items (coins, stamps, sports cards, souvenirs, and memorabilia)
- Guitars and other musical instruments – over 20 years old, and customized
- Scale models and prototypes
Declared Value does not mean full price
Regardless of the declared value of the shipment, FedEx’s liability for loss or damage will not exceed the repair cost, depreciated value or replacement cost, whichever is less. FedEx will pay out the smallest amount, even if that means more work for you.
In addition, the declared value does not cover any loss from loss of profit or income. Even if FedEx has full knowledge that a delay or damage will result in the loss of profit.
Deadline for Claims
- Express – FedEx must receive notice of a claim due to damage, delay or shortage within 21 calendar days after delivery of the shipment.
- Ground – The sender or recipient must notify FedEx Ground no later than 60 days after the date of delivery.
More to come
Stay tuned for our next post in which we will cover UPS declared value fees then look at some way to lower these costs. UPS also does not provide shipping insurance to be clear. How much do you spend on declared value fees? Refund Retriever’s reports can give you an exact dollar amount for any period. Our declared value report will give you the amount spend and a full list of all the tracking numbers with this surcharge.