Declared Value: What It Is and What It Is Not
When you create a FedEx shipment, you can enter a declared value. This article explains what that number actually does, what it does not do, and the conditions attached to it. The details below reflect FedEx’s published rules. Other carriers use the same concept with their own limits and terms.
What declared value is
Declared value is the maximum amount FedEx will be liable for if your shipment is lost, damaged, delayed, or misdelivered. It raises FedEx’s limit of liability above the standard amount included with every shipment.
A few points define how it works:
- The first $100 of value is included in your shipping rate at no extra charge, as part of FedEx’s standard $100 limit of liability. You pay a declared value fee only on the amount above $100.
- The amount you declare should reflect what it would cost to replace or repair the items in the shipment.
- Declared value fees are incremental. The cost depends on the amount you declare and the service you choose.
- Payment for declared value is due when you create the shipment and pay your shipping costs.
- Shipments declared at $500 or more automatically get Direct Signature Required at no extra charge.
- Maximum declared values apply to certain items, such as artwork, jewelry, and antiques, and to specific FedEx services. The FedEx Service Guide is the source for those limits.
For high-value jewelry, the FedEx Declared Value Advantage service lets eligible shippers declare up to $100,000 per domestic shipment and up to $25,000 to select international destinations. Coins and gold bars are excluded.
What declared value is not
Declared value is not shipping insurance, and declaring a value does not guarantee you will be paid.
- It is not insurance. Insurance is purchased separately from an agent or broker. It provides door-to-door coverage, covers losses outside FedEx’s control, can include expedited replacement goods, and can reimburse shipping costs. Declaring a value with FedEx is completely independent of any insurance you carry.
- It is not a guaranteed payout. To be reimbursed, you must file a claim in writing, prove the loss or damage, and prove that FedEx was at fault. FedEx reviews and investigates each claim individually.
- It is not the amount you are guaranteed to receive. No matter what you declare, FedEx’s payment will not exceed the shipment’s repair cost, its depreciated value, or its replacement cost, whichever is less.
- It does not override packaging responsibility. If a shipment is improperly packed and then damaged, FedEx will not be considered at fault.
- It does not apply to prohibited items. If you declare a value for prohibited items such as firearms, cash or currency, or tobacco products and they are lost or damaged, you will not be reimbursed.
- It cannot exceed the published maximums. Any attempt to declare a value above the maximum allowed in the FedEx Service Guide is null and void.
How to enter declared value
When you build a label, enter a dollar amount in the declared value field under package and shipment details. Set it to the full replacement or repair cost of the contents. Review the declared value fee when you calculate total shipping costs before you confirm.
If you need to file a claim
File the claim in writing. FedEx will investigate and reimburse only if the shipment was properly packed and the loss, damage, delay, or misdelivery is found to be the result of FedEx’s negligence.