USPS Shipping Insurance Guide: Priority Mail, Registered & Claims
Written by Valentin Scemama, Shipping Insurance & Watch Expert at Secursus.
If you are in the process of shipping an expensive package and need information about USPS Shipping Insurance, you’ve come to the right place. Our expert has analyzed hundreds of complex pages from the USPS pricing grid (Notice 123), and we have compiled the most important information here: insurance pricing, limitations, maximum coverage, and territoriality. Look no further.
📝 Key Takeaways (2026 Rates Summary)
- Basic Cost: Insurance starts at $2.70 for items valued up to $50.
- Standard Rate: For items over $600, the cost is $8.95 plus $1.50 for every additional $100.
- Limits: Standard Priority Mail insurance is capped at $5,000.
- Included Coverage: Priority Mail and Ground Advantage automatically include $100 of coverage.
We will also show you in detail the USPS Insurance Rates and how you can save up to 50% on your insurance premiums with a specialized solution.
USPS Insurance Rates 2026
No wonder USPS pricing is difficult to understand: USPS remains a government agency and understanding how much it costs is tricky because it depends on declared value and shipping method. Here is the official breakdown verified by our expert in early 2026, from the official USPS Notice 123.
| Declared Value | USPS Insurance Cost & Rates | Coverage Details |
|---|---|---|
| $0.01 to $50 | $2.70 | Basic coverage |
| $50.01 to $100 | $3.40 | Standard tier |
| $100.01 to $200 | $4.40 | Common for clothing/small items |
| $200.01 to $300 | $4.45 | Best value tier |
| $300.01 to $400 | $5.95 | Mid-range pricing |
| $400.01 to $500 | $7.45 | High cost relative to value |
| $500.01 to $600 | $8.95 | Proof of value strictly required |
| $600.01 to $5,000 | $8.95 + $1.50 | Cost is $8.95 plus $1.50 for every extra $100 over $600 |
USPS Registered Mail Insurance Cost for Items Over $5,000
Standard USPS insurance stops at $5,000 for Priority Mail. If you need to insure items up to $50,000, you must use Registered Mail. This is the most secure service USPS offers (items are kept under lock and key), but it is slow and expensive.
Wondering why you’d pay $19.70 to insure a value of zero? Think of it as hiring a personal bodyguard: you aren't paying for a potential refund, but for the privilege of having your package travel like a celebrity under lock and key. This specific tier is designed for items with no commercial value but irreplaceable importance, such as legal evidence, original manuscripts, or sensitive documents.
| Declared Value | USPS Registered Mail Insurance Cost |
|---|---|
| $0.00 | $19.70 |
| $0.01 - $100.00 | $20.40 |
| $100.01 - $500.00 | $23.50 |
| $500.01 - $1,000.00 | $26.40 |
| $1,000.01 - $2,000.00 | $29.30 |
| $2,000.01 - $3,000.00 | $32.20 |
| $3,000.01 - $4,000.00 | $35.10 |
| $4,000.01 - $5,000.00 | $38.00 |
| $5,000.01 - $50,000.00 | $38.00 + $2.90 per $1,000 |
| Over $50,000 | $168.50 |
Compare with Secursus: For a $10,000 watch, Registered Mail costs $52.50 (plus postage) and takes 10-14 days. Secursus allows you to use Priority Mail Express (Overnight) and covers up to $120,000.
Can I get free insurance? (Included Coverage)
Before buying redundant extra insurance, we advise you to check if your USPS service already includes it and what you need to be eligible.
| Service (Priority Mail, Ground) | Insurance Included? | Coverage Limit | Condition |
|---|---|---|---|
| Priority Mail® | ✅ YES | Up to $100 | Automatic (No forms needed) |
| Priority Mail Express® | ✅ YES | Up to $100 | Includes money-back guarantee |
| USPS Ground Advantage™ | ✅ YES | Up to $100 | Replaces First-Class Pkg |
| Media Mail / First-Class | ❌ NO | $0 | Must purchase separately |
2026 Price Comparison: USPS vs Secursus
When shipping high-value items, the standard USPS calculation ($1.50 per $100) adds up quickly. At Secursus, we've been insuring expensive packages since 2018 and we have more than 40,000 customers worldwide. If you need reliable shipping protection, consider using Secursus without changing the way you ship, as our coverage is valid with literally all express carriers.
Here is the reality check based on verified rates.
| Package Value | USPS Total Cost | Secursus Est. Cost | Verdict |
|---|---|---|---|
| $1,000 | $14.95 | ~$10.00 | ✅ Save ~35% |
| $2,000 | $29.95 | ~$20.00 | ✅ Save ~35% |
| $3,000 | $44.95 | ~$30.00 | ✅ Save ~35% |
| $5,000 (USPS Max) | $74.95 | ~$50.00 | ✅ Save ~35% |
| $10,000 | ❌ Not Covered | ~$100.00 | ✅ Full Coverage |
Calculation: Base $8.95 + ($1.50 x per $100 over $600).
What Does USPS Insurance Cover? (Theft, Loss and Damage)
Like any insurance policy, USPS has many limitations. If your package is lost within the USPS network, it will be covered ONLY if you provide supporting documentation such as a recent invoice and proof of payment.
If you think your package was stolen, you will be required to file a police report and wait until the case is resolved. Once your package has been delivered, the coverage stops.
| Scenario | Covered by USPS? | Important Requirement |
|---|---|---|
| Lost in Transit | ✅ YES | Tracking must stop updating completely. |
| Damaged in Transit | ✅ YES | 📦 Must keep the box & packaging for inspection. |
| Missing Contents | ✅ YES | Package arrives open/empty (Notes on delivery req.). |
| "Porch Piracy" (Theft) | ❌ NO | Once scanned "Delivered", USPS liability ends. |
Does USPS cover "Porch Piracy" (Stolen after delivery)?
No. Once the tracking says "Delivered," USPS liability ends unless USPS was supposed to deliver your package with delivery confirmation or signature. In this case, you will have to prove the fault of the carrier, and the only way would be to provide a CCTV recording of the delivery, showing the carrier delivering your package at your front door without any confirmation.
How to File a USPS Insurance Claim (Step-by-Step)
Do you have an issue with your package and need to file a claim with USPS? Be prepared to face a time-consuming process. However, if you already bought the USPS coverage, you need to be aware of the deadlines to prevent the coverage from being voided.
| Step | Action to File Claim | Critical Deadline ⏳ |
|---|---|---|
| 1. Check Status | Verify package is officially lost or delivered damaged. | Wait 15 days (Loss) Immed. (Damage) |
| 2. Gather Proof | Collect receipt, tracking #, and proof of value (invoice). | Before logging in |
| 3. File Online | Submit via USPS Domestic Claims Portal. | Max 60 days from mailing |
| 4. Inspection | ⚠️ Bring item + packaging to Post Office if asked. | Do not discard packaging! |
| 5. Payout | Receive check via mail. | Processing: 30-90 days |
Real-World Case Studies: The Hidden Cost of Risk
Why do thousands of merchants switch to third-party insurance? It is rarely just about the price of the label. It is about cash flow and risk management.
| Scenario | The USPS Reality 🛑 | The Secursus Advantage 🚀 | Financial Outcome |
|---|---|---|---|
| 1. The High-Value Watch ($10,000 via Priority Mail) | ❌ Capped at $5,000. Standard shipping is limited to $5k. To insure $10k, you MUST use slow Registered Mail. | ✅ Full $10,000 Coverage. Use fast shipping (Overnight) and remain 100% insured up to $120k. | Secursus saves you $5,000 in potential risk. |
| 2. The Laptop Seller ($2,500 Package Lost) | ❌ Funds Frozen (90 Days). USPS investigations take months. Your $2,500 is gone from cash flow. | ✅ Paid in ~3 Days. Automated claims process built for speed. Reship immediately. | Cash flow restored in < 1 week. |
| 3. International Shipment ($800 to Europe) | ❌ Country Limits Apply. USPS limits vary by country. You risk being under-insured based on destination. | ✅ Global Coverage. Fixed $120,000 limit across all routes. No complex tables. | 100% of margin protected. |
💡 The Expert Takeaway: USPS insurance is designed for casual shippers. If shipping high-value packages is your business, relying on restricted services (Registered Mail) or slow claims is a liability. At Secursus, we turn insurance from a headache into a competitive advantage.
The International Complexity
Shipping internationally adds another layer of rules. Shipping Insurance limits vary wildly depending on the destination country's local postal regulations.
⚠️ Debunking the "$900 Limit" Myth
Some misleading forums claim that USPS International insurance is globally capped at $900. This is factually incorrect. While some countries do have low limits, many major destinations allow much higher declared values via Priority Mail Express International:
- United Kingdom, Japan, Canada: Up to $5,000
- France: ~$1,600 (varies by exchange rate)
Source: USPS International Mail Manual (IMM) - Country Price Groups.
Secursus solves this with a fixed $120,000 limit across all routes (including domestic USA), regardless of the destination's local postal cap.
Coverage Comparison 2026
Below you'll find a full comparison table between USPS Insurance and Secursus.
| Category | USPS | Secursus |
|---|---|---|
| Watches | $500 Cap / $5k Max | $120k Limit |
| High-Tech | Strict audit required | 100% Covered |
| Collectibles | Complex valuation | Specialist Coverage |
| Used Goods | Depreciation applied | Full Value |
| Claim Speed | 30-90 Days | 3 Days |
FAQ: USPS Insurance 2026
Is USPS Ground Advantage insured?
Yes. USPS Ground Advantage automatically includes insurance up to $100 without any extra fees. The insurance covers loss and physical damage.
Is USPS First-Class Mail insured by default?
No, this is a common trap for casual shippers. Unlike Priority Mail or Ground Advantage, which both include $100 of automatic liability coverage, standard First-Class Mail (Letters and Flats) comes with $0 protection. If your First-Class envelope is lost or damaged you will receive no compensation unless you explicitly purchased a specific "Insurance Add-on" or chose Registered Mail at the time of shipping.
Why was my claim denied?
Common reasons include filing outside of the deadline (60 days) or failure to provide proof of value (invoice). You can appeal the decision directly with USPS.
Can I insure watches over $5,000?
Only with restrictive Registered Mail. Secursus covers watches up to $120,000 on standard shipments like Priority Mail or Ground Advantage (Signature required).
🚨 USPS 2026 Rates Update
The rates below reflect the Notice 123 (Effective October 2025), currently applicable. Be aware that a general rate increase of ~5-8% is scheduled for January 18, 2026. Source: USPS Postal Explorer.
