Declared Value Explained

Declared value is not insurance. They are different!

When shipping an item, the owner of the piece(s) being shipped declares the value of those piece(s) before shipment. This is typically the value on the receipt or commercial invoice when purchasing the item. The declared value is the value that the customer will receive should the item be lost or damaged.

There is a fee charged per $100 of declared value. However, most carriers do provide the first $100 of declared value for free.

Lost items: From time to time, all carriers lose packages. If a package is declared “lost” after an investigation period, a claim is filed, and the customer receives a check for the full amount of the declared value along with the cost of shipping. If there is no declared value, the reimbursement defaults to the limits of the carrier. UPS for instance includes $100 of declared value with each shipment. It is included in the quoted price of shipping.

Damaged items: No matter how well the item is packed, on rare occasions, an item may get damaged from factors such as water damage, damage from falls or by being crushed. If an item is damaged here are the steps that are taken:

The receiver or owner of the goods being shipped declares the value of the item or items in the shipment before it ships.
The receiver reports the damage to the shipper immediately after delivery. The receiver must determine whether the item is repairable. Please, do not discard any of the packaging material or boxes.
The shipper calls the carrier and starts the claim process.
The carrier asks the receiver directly for an onsite inspection or photos of the item and packaging. If the piece is declared non repairable the carrier will pick up the package.
The claims department of the carrier determines whether the packing was sufficient and may approve or deny the claim based on their findings.
The claims department then sends a determination to the shipper.
If the claim is approved, the shipper submits a credit card receipt and a shipping receipt along with a repair appraisal or declaration of “non-repairable”, if the item is beyond repair. The receiver is directly responsible for providing the repair estimate. The receiver is also responsible for proving the declared value of an item through documentation. Most often the value is determined by the price paid at auction on an invoice or through a private evaluation from an independent appraisal.
Please note: A carrier will NOT PAY for repair, replacement, or a “non-repairable” claim above the declared value. If no extra declared value is stated at shipment, $100 will be the maximum payout allowed for the item along with shipping costs incurred. If multiple items are in a shipment, it is more difficult to determine the value. For example, if one item is damaged in a box containing three items, the value of that item is determined by the amount paid for it. If there are three items in the same box, the carrier may only reimburse the shipping cost divided by three.
Recommendation: Given the fragile nature, age and value of most collectibles, every auction house and shipper recommends declaring the total value of the items.

Important: For ALL International shipments, the Declared Value must match the invoice value to reduce the risk of having the item stuck in customs. The shipper is not responsible for paying taxes and/or customs or duties on items shipped. These fees are the sole responsibility of the receiver.

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