Understanding UPS Declared Value

When shipping packages, whether for personal or business purposes, it's essential to understand the concept of declared value. In this blog post, we'll delve into what UPS declared value is, how it works, and why it is crucial for your shipments.

What is UPS Declared Value?

UPS declared value is a declaration from the shipper on the worth of the goods being shipped. It represents UPS's maximum liability for the package in case of loss or damage. By default, every UPS domestic package, international shipment, or pallet in a UPS Worldwide Express Freight® Service Shipment is limited to a value of $100. However, shippers can declare a higher value for an additional charge.

It's important to note that declaring a higher value with UPS is not the same as purchasing insurance. It merely increases UPS's liability limit. If you desire all-risk insurance or another form of insurance, you should purchase it from a third party.

UPS automatically provides a liability coverage of $100 for every package in case of loss or damage. However, shippers have the option to increase this value by declaring a higher worth for their shipment, which comes with an additional fee. It's crucial to understand that this declared value is not an insurance policy.

With UPS, the initial $100 of your declared value is included at no extra cost. For declared values ranging from $100.01 to $300, an additional fee of $3.90 is charged. For values exceeding $300, an extra charge of $1.30 is applied for each increment of $100 in declared value.

For instance, if a value of $600 is declared, the additional fee would be $7.80 (calculated as 6 times $1.30). See image for clear example.

The maximum declared value varies depending on the shipping circumstances:

• $50,000 for a package shipped using a UPS account number or from a UPS Store.
• $5,000 for a package paid for with a payment card via UPS Internet Shipping.
• $1,000 for packages returned via UPS Print Return Label, UPS Print and Mail Return Label, Electronic Return Label, or 1 UPS Pickup Attempt, Return Services, and UPS Returns on the Web.
• $1,000 for a package shipped via a third-party retailer.
• $500 for a package dropped off at a UPS Drop Box.
• $500 for an international shipment containing jewelry.
• $999 for packages shipped using Shipper Release.

It's important to note that shippers cannot declare a value for UPS Prepaid Letters.

According to the UPS Tariff/Terms and Conditions of Service, UPS does not offer insurance for any item with a declared value over $100. In such cases, insurance should be sought from a third party like UPS Capital. If a shipper declares a value less than $100, UPS will compensate the lowest of $100, the declared value, the depreciated price of the item, or the repair cost.

UPS is not responsible for loss or damage resulting from various factors, including but not limited to unusual value items, prepaid letters, improper packaging, perishable commodities, and acts of God, among others.

For multi-box shipments, the declared value is applied to each box. For example, if you declare a value of $150 and there are three boxes in the shipment, the declared value for each box is $150, totaling $450 for the order.

The declared value covers only the item's value and does not include packing materials or shipping costs unless your item was packaged and shipped at a UPS store. Packages processed at a UPS store that result in a loss or incur damage can receive the full declared value of the shipment and materials stated at the time of the transaction.

Navigating the world of shipping and logistics can be complex, but understanding concepts like UPS declared value can make the process smoother and more secure. Remember, the declared value is not insurance but a way to increase UPS's liability limit for your package. For high-value shipments, consider purchasing additional insurance from a third party. As always, for the most accurate and up-to-date information, refer to UPS's official documents or contact them directly.

If you're interested in learning more about reducing your UPS declared value fees, feel free to contact us at ClaimMe.