In shipping, declared value is the dollar amount you assign to a package that sets the maximum a carrier will pay you if the shipment is lost or damaged. It is a liability ceiling, not an insurance policy and not a guaranteed payout. Most major carriers build a default limit of $100 per package into the base rate, so anything you send without entering a higher figure is covered only up to $100, no matter what’s actually in the box.1FedEx. Declared Value and Limits of Liability for Shipments
What Declared Value Actually Does
Declared value is a contractual cap on the carrier’s liability. The legal basis for it in interstate shipping is the Carmack Amendment, 49 U.S.C. ยง 14706, which makes motor carriers and freight forwarders liable for actual loss or damage but lets them limit that liability to a value the shipper declares in writing or electronically.2Office of the Law Revision Counsel. 49 USC 14706 – Liability of Carriers Under Receipts and Bills of Lading
Two things follow from that. First, the number works as a ceiling in both directions. If your item is worth $800 and you declare $500, the carrier owes at most $500. If you declare $800 but can only document $600 in actual damage, you get $600. Inflating the figure doesn’t inflate the payout; it just raises your fees.
Second, the valuation is entirely on you. Carriers won’t open your box to assess what’s inside. Leaving the declared value field blank, or leaving it at the default, means you have accepted the $100 cap even if you are shipping a $3,000 laptop. That assumption gap is where most claim disputes start.1FedEx. Declared Value and Limits of Liability for Shipments
The Default Limit and What It Costs to Raise It
FedEx and UPS both include $100 of liability coverage per package in the standard rate.1FedEx. Declared Value and Limits of Liability for Shipments USPS includes up to $100 of coverage with Priority Mail Express, Priority Mail, and Ground Advantage.3USPS. Shipping Insurance and Delivery Services Above that line, you pay an excess value fee to raise the cap.
The fees look modest at low values and add up quickly at high ones. For 2026, FedEx charges a flat $4.95 for declared values from $100.01 to $300, then $1.65 per additional $100 above $300.4FedEx. FedEx 2026 Service Guide – Other Transportation-Related Fees UPS charges $1.70 per $100 of declared value with a $5.11 minimum.5UPS. 2026 UPS Revised Rates for Value-Added Services and Other Charges USPS calls its product insurance rather than declared value; it starts at $2.70 and covers items up to $5,000 online or in person, or up to $50,000 through Registered Mail.3USPS. Shipping Insurance and Delivery Services
Run the math before you ship. A $2,000 FedEx shipment carries roughly $33 in excess value fees, and the fee is nonrefundable whether or not you ever file a claim.
Declared Value Is Not Insurance
These two things look similar at checkout and behave very differently when something goes wrong. Declared value is a liability cap set in your contract with the carrier. To get paid, you still have to show the carrier was responsible and prove what you actually lost. The carrier runs the claims process and decides whether to pay.1FedEx. Declared Value and Limits of Liability for Shipments
Third-party shipping insurance is a separate policy from an independent company. It usually pays when a covered event occurs, without requiring you to prove the carrier was at fault, and the claim is handled by the insurer rather than the carrier. If a carrier denies a declared value claim, your options are to escalate within the carrier’s process or sue. With a separate insurance policy, you file a parallel claim with the insurer regardless of what the carrier does.
USPS blurs the line by using the word “insurance” for what is essentially an in-house liability program.3USPS. Shipping Insurance and Delivery Services For high-value or irreplaceable items, some shippers do both: declare value with the carrier and buy third-party insurance on top.
Hard Caps and Items That Are Not Fully Covered
Carriers also set hard ceilings on how much you can declare, regardless of what you are willing to pay in fees. UPS caps standard domestic packages at $50,000 per package, or $100,000 per pallet for Worldwide Express Freight.6UPS. 2026 UPS Service Guide – Reference Information and Liability FedEx Envelopes and Paks carry a much lower $100 ceiling regardless of contents.
Specific categories face tighter restrictions. FedEx caps jewelry at $1,000 per shipment unless the shipper is enrolled in the Declared Value Advantage program, which allows up to $100,000 domestically and up to $25,000 to select international destinations, but excludes coins and gold bars entirely.7FedEx. FedEx Declared Value Advantage Program for High-Value Jewelry Across carriers, these items commonly see lower caps or outright exclusions:
- Cash and negotiable instruments, which many carriers refuse to cover beyond $100 or at all.
- Precious metals and loose gemstones, typically capped well below market value.
- Perishable goods and live animals, generally excluded because damage is hard to tie to carrier handling.
- Artwork and antiques, often subject to appraisal and specialty packaging requirements.
If your item sits in one of these categories, read the carrier’s terms before you ship. Declaring $10,000 on a package of loose gemstones doesn’t help if the terms cap recovery at $500.
How to Declare a Value and Back It Up
Entering the number takes seconds. Supporting it after a loss takes preparation. Gather documentation before the box leaves your hands: purchase receipts, invoices, professional appraisals for unique pieces, and clear photos of the item’s condition at the time of packing. Serial numbers and model information tie the claim to the specific item.
On the carrier’s shipping screen, the declared value field usually sits near package weight and dimensions. Enter the figure that reflects the item’s actual value. Once you go above the default $100, the system adds the excess value fee to your total. Review the summary before paying, and save the receipt or confirmation showing the declared amount and the fee you paid. That receipt is your primary proof you bought enhanced coverage.
At FedEx, declaring $500 or more automatically triggers a direct signature requirement at delivery at no extra charge, which creates a chain-of-custody record that helps if the package later turns up missing or damaged.1FedEx. Declared Value and Limits of Liability for Shipments
If the Shipment Is Lost or Damaged
The declared value figure only matters when a claim arises, so it’s worth knowing the basic rules. Under the Carmack Amendment, you need to show that the carrier received the goods in good condition, that they arrived damaged or didn’t arrive, and the dollar amount of your loss. The legal burden then shifts to the carrier to show it wasn’t responsible. Federal law also sets floors on timing: a carrier cannot require you to file a claim in fewer than nine months after delivery, and if your claim is denied in writing you have at least two years from that denial to sue.8Office of the Law Revision Counsel. 49 USC 14706 – Liability of Carriers Under Receipts and Bills of Lading – Section e Carriers must acknowledge your written claim within 30 days of receipt.9eCFR. 49 CFR Part 370 – Investigation and Voluntary Disposition of Loss and Damage Claims
One practical rule saves more claims than any other: do not throw away the packaging. Keep the box, padding, tape, and damaged item exactly as you found them. Carriers can send an inspector, and tossing the materials or refusing inspection can result in a flat denial.10U.S. General Services Administration. Freight Damage Claims FAQs Photograph everything from multiple angles before anything moves, and if the carrier waives inspection, get that waiver in writing. The written claim itself needs enough information to identify the shipment, assert liability, and request a specific dollar figure.11eCFR. 49 CFR 370.3 – Filing of Claims The declared value receipt you saved at checkout anchors the amount you can recover.