May 21, 2023

FedEx Shipping Insurance - The Complete Guide

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Congratulations! You've successfully sold that vintage comic book, dust-covered PS4, or pre-loved designer bag on your favorite online marketplace. The excitement is palpable as you prepare to ship your item to its new owner.

But now comes the most stressful part, where you cross your fingers and hope that your precious cargo makes it to its destination unscathed. Accidents happen, and the last thing you want is to be left high and dry if your package gets lost or damaged in transit. That's where FedEx insurance can give you peace of mind.

In this guide, we'll walk you through everything you need to know about protecting your valuable items with FedEx shipping insurance.

What is FedEx Insurance?

FedEx insurance is a service provided by FedEx that covers you against loss or damage during transit. It acts as a safety net, providing financial protection for the value of your goods in the event of these unfortunate events.

Note that although we’re referring to this coverage as FedEx insurance, the carrier clearly states that it does not provide insurance coverage for your package. Instead, it offers declared value coverage, representing the carrier’s maximum liability for your shipment. In case of damage, loss, or misdelivery, FedEx will investigate the claim and provide compensation based on the declared value of the package.

The declared value is the maximum amount you specify for your shipment, equivalent to the total amount it would cost to repair or replace the items you’re shipping. If you incur any loss above the declared amount, you will have to assume it.

If you want, you can also purchase package insurance from an insurance broker to enjoy more peace of mind with door-to-door protection. This type of insurance will cover losses beyond FedEx’s control and expedite replacement goods.

How Much Does FedEx Insurance Cost?

The price you pay for FedEx insurance depends on the specific service you choose and the value of the items you're shipping. FedEx provides a basic level of coverage for free, for items valued up to $100. That means if anything happens to your package and its value is $100 or less, you're covered without spending a dime.

However, if you're shipping something more valuable, you can purchase additional coverage to protect against potential losses. For instance, if you opt for FedEx SameDay shipping, where the maximum declared value is $2,000, you will pay $3.50 if your shipment is valued between $100.01 and $350.You’ll pay an extra $1.25 per $100 in additional declared value for shipments over $300.

The maximum declared value per package for other shipping options is $50,000. These shipping options include FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx 2Day A.M., and FedEx Express Saver.

However, exceptions exist where the maximum declared value is limited to $1,000, depending on the content. An example is when your shipment contains artwork, photographic images, antiques, jewelry, or collector’s items.

When Should You Use FedEx Insurance?

Deciding when to use FedEx insurance ultimately depends on the value and importance of the items you're shipping. While FedEx provides a basic level of coverage, it may not be sufficient for every situation. Here are a few scenarios where opting for FedEx insurance is highly recommended:

  • High-value items: if you're shipping valuable items such as high-end electronics, jewelry, or artwork, it's wise to consider purchasing additional insurance.
  • Fragile or delicate items: delicate or fragile items like glassware are more prone to damage during transit, so it makes sense to insure them.
  • Peace of mind: sometimes, the value of an item goes beyond its monetary worth. If you have sentimental or irreplaceable items that hold significant personal or emotional value, purchasing FedEx insurance can provide peace of mind.

Who Should Use FedEx Shipping Insurance?

If you’re selling something online as a casual seller or a serious online business owner, you’re an ideal candidate for FedEx insurance. Packages can get mishandled, boxes can be dropped, and sometimes, things just go missing. Without insurance, you could find yourself at a loss, both financially and in terms of customer satisfaction: customers trust you to deliver their purchases in one piece, and their satisfaction is essential to your online reputation.

By using FedEx insurance, you're safeguarding your financial investment and demonstrating your commitment to customer service and reliability. It shows that you're taking steps to ensure items arrive safely, and that effort builds trust and loyalty in the long run.

What Does FedEx Insurance Cover or Not Cover?

Before you invest in FedEx shipping insurance, you should understand what you’re getting coverage for and what won’t be covered. FedEx declared value coverage protects your shipments against:

  •  Loss
  • Damage
  • Delayed Delivery
  • Misdelivery
  • Non-delivery
  • Misinformation related to the shipment

However, FedEx will not provide coverage in the following scenarios:

  • Your shipment gets damaged due to inadequate or improper packaging
  • Delays caused by factors beyond FedEx’s control, such as extreme weather
  • Loss of, or damage to, prohibited items like cash or live animals

FedEx has a long list of terms and conditions you can read before insuring your shipment, to better understand what exactly is covered and what is excluded.

How to Package an Item

The packaging materials and methods that you use for your items could determine if FedEx bears liability for item damages when you file a claim. If your shipment wasn’t packaged properly, you may be responsible for losses. Follow these packaging tips to ensure that your item is adequately packaged and covered by FedEx:

  • Choose the right box: select a sturdy and appropriately sized box for your item. Use a new, corrugated cardboard box whenever possible, as they offer consistent strength and durability.
  • Wrap items individually: wrap each item separately and use protective materials such as bubble wrap, foam, or packing paper. This helps prevent movement and collisions between items within the package.
  • Use cushioning materials: fill empty spaces in the box with cushioning materials like packing peanuts or air-filled pillows.
  • Seal the package properly: close the box securely using strong packing tape. Reinforce all seams and edges to ensure the box remains intact during transit.
  • Label the package clearly: clearly label the package with the recipient's address, your return address, and any other necessary shipping labels. Use waterproof labels or put clear tape over the labels to protect them from smudging and damage.
  • Consider double boxing: for extremely fragile or valuable items, consider using the double boxing method. Place the well-packaged item inside a larger box and fill the space between the two boxes with cushioning materials.

You should also familiarize yourself with how to pack specialty items like auto and mechanical parts, batteries, bikes, firearms, flowers and plants, and perishables.

How to File a Claim

No matter how well you package and label your items, sometimes accidents can still happen during shipping. If you find yourself in that unfortunate situation, don’t hesitate to file a claim with FedEx. Here's a step-by-step guide on how to file a claim:

Gather the Necessary Documentation

Gather all relevant documents related to your shipment and the damage or loss incurred. This includes the tracking number, shipping label, proof of value (receipts, invoices, or appraisals), photos of the damaged item(s), and other supporting evidence.

Initiate the Claim

You can submit your claim online or via mail to the FedEx claims department. However, filing online is a better option, as it lets you track your claim’s status. You’ll need to create an account to access an online claim form.

You should specify the claim type you’re making and add supporting documents. Relevant documents include:

  • Photos of the package and the damaged item
  • Serial numbers, if relevant, for the lost or damaged merchandise
  • Proof of the item’s value (such as an original invoice or receipt)
  • Proof of payment
  • An expense statement

After attaching the right documents, submit the claim form and make a note of the case number.


If FedEx needs to investigate your claim, they will notify you. If possible, retain the shipment’s original packaging and contents to aid the inspection and discard them only when the carrier resolves your claim.

Claim Resolution

According to the FedEx website, resolving a case takes 5-7 business days after FedEx receives the claim form. The process may take longer if there is a need for additional research.

You should file a claim for missing or damaged content within 60 days from the shipment date. For undelivered or lost shipments, you should file a claim within nine months. FedEx will reimburse you if you had packed your shipment properly and if the delay, damage, loss, or misdelivery resulted from the company’s negligence.

Skip the Complicated FedEx Insurance by Selling Your Items Online with Sella

While FedEx insurance can provide some protection for your shipments, the claims process can be complex and time-consuming. The intricate steps, documentation, and potential delays may overwhelm and frustrate you. The good news is that you can skip all this shipping and insurance claim stress by selling your items online with Sella.

When you partner with Sella to sell your stuff, we’ll handle the entire selling process, from listing your items to packaging and shipping them to the buyers; yes, we’ll even file claims on your behalf. And, the best part is that you’ll take home 90% of the profit from your sale (that’s the final selling price, less fees and costs for time and materials). See what you can sell and get started today.