FedEx Declared Value Insurance Calculator
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Declared Value Covered: $0.00
Estimated Insurance Cost: $0.00
Understanding FedEx Declared Value and Insurance
When shipping valuable items, ensuring they are protected against loss or damage is crucial. FedEx offers "Declared Value" coverage, which is often referred to as insurance, though technically it's a limit of liability. This calculator helps you estimate the cost of this declared value coverage for your FedEx shipments.
What is Declared Value?
Declared Value is the maximum liability FedEx will assume in connection with a shipment, in case of loss or damage. It's not traditional insurance, but rather a contractual limit of liability. If your shipment is lost or damaged, FedEx will pay you the lesser of your actual damages or the declared value.
How Does FedEx Declared Value Coverage Work?
For most FedEx services, the first $100 of declared value is included free of charge. This means if your item is valued at $100 or less, you typically won't pay an additional fee for this basic level of protection.
However, if your shipment's value exceeds $100, you will incur an additional charge. This charge is usually calculated per $100 (or fraction thereof) of declared value above the initial $100. For example, if the rate is $1.10 per $100, and your item is valued at $550:
- The first $100 is free.
- The remaining value to be covered is $550 – $100 = $450.
- This $450 is divided into $100 increments: $450 / $100 = 4.5 increments.
- Since FedEx charges for each fraction of $100, this rounds up to 5 increments.
- The additional cost would be 5 increments * $1.10/increment = $5.50.
Why is Declared Value Important?
Without declaring a value higher than the standard $100, FedEx's liability for a lost or damaged package is limited to $100. If you're shipping an item worth $1,000, and it gets lost, you would only receive $100 back unless you declared a higher value and paid the associated fee.
Key Considerations:
- Actual Value vs. Declared Value: Always declare the actual value of your item. Over-declaring won't get you more than your actual loss, and under-declaring leaves you under-protected.
- Maximum Declared Value: FedEx has maximum declared value limits, which can vary by service type and destination. For most services, this limit is $50,000, but it can be lower for certain items or higher for specialized services.
- Proof of Value: In the event of a claim, you will need to provide proof of the item's value (e.g., receipts, invoices).
- Packaging: Proper packaging is essential. Even with declared value coverage, claims can be denied if the item was not adequately packaged for shipment.
- Exclusions: Certain items (e.g., cash, antiques, unique artwork) may have specific restrictions or be excluded from declared value coverage. Always check FedEx's terms and conditions.
Use this calculator as an estimate. For precise costs and the most up-to-date terms, always refer to the official FedEx website or contact their customer service.