USPS Shipping Insurance 2026: Included Coverage, Fees and Claims

2026 USPS rule: Priority Mail, Priority Mail Express and USPS Ground Advantage include up to $100 of insurance; extra coverage costs $2.80 for up to $50 and rises to $9.05 plus $1.50 per $100 over $600, with a $5,000 maximum.

Quick answer: USPS includes $100 of coverage on Priority Mail Express, Priority Mail and Ground Advantage labels that carry the right tracking barcodes. Above that, you buy insurance by declared value, up to $5,000. File claims online: damage or missing contents within 60 days of mailing, lost Priority Mail Express 7 to 60 days after mailing, and lost Priority Mail or insured mail 15 to 60 days after mailing. UPS declared value is also free to $100 and goes up to $50,000, but at the values compared below it costs more than USPS insurance.

Sources: USPS Notice 123 Price List, effective October 4, 2026; DMM 503.4 (insured mail) and DMM 609 (claims), checked October 29, 2026. UPS figures from the UPS 2026 Rate and Service Guide (daily rates).

Included Coverage: What You Get Without Paying Extra

Priority Mail and USPS Ground Advantage

Under DMM 503.4.2, Priority Mail (including Priority Mail Return) and USPS Ground Advantage Retail and Commercial (including Ground Advantage Return) are insured against loss, damage or missing contents up to $100. Conditions:

• The piece must bear an Intelligent Mail package barcode (IMpb) and an Intelligent Mail matrix barcode (IMmb) or a USPS retail tracking barcode, and the mailer must pay retail or commercial prices.
• Priority Mail pieces not supported by a Shipping Services file need a full acceptance scan to qualify.
• No included coverage for Priority Mail Open and Distribute or Premium Forwarding Service.

USPS's extra services page also says Priority Mail insurance is not included when you buy it along with certain extra services.

Priority Mail Express

DMM 503.4.1 insures Priority Mail Express merchandise up to $100 and nonnegotiable documents up to $100 per piece for reconstruction costs. Two delivery rules limit loss claims: a Priority Mail Express item signed for by the addressee or agent is a valid delivery, and for items not requiring a signature, a delivered scan is a valid delivery. No indemnity for loss is paid in either case. Additional insurance up to $5,000 is available, but not when signature service is not requested or a signature waiver is requested (DMM 503.4.1.1).

What Extra USPS Insurance Costs

Source: Notice 123, Domestic Extra Services and Fees, effective October 4, 2026. Maximum liability is $5,000. Insurance Restricted Delivery, available for items insured over $500, is $8.80. The temporary price change in effect from October 4, 2026 to January 17, 2027 did not change special services fees. In July 2026 the Postal Regulatory Commission noted USPS was evaluating a January 2027 market dominant price adjustment; as of October 29, 2026 we found no Federal Register notice setting new insurance fees.

Rules that affect what you pay and recover

• Actual value only. DMM 609.5.1 says USPS pays no more than the item's actual value when mailed and no more than the coverage the fee paid for. Insuring above value buys nothing.
• One source of postal insurance per piece. You can't combine postal insurance bought from multiple sources (DMM 503.4.3.1).
• Over $500 means a signature. Items insured for more than $500 get a delivery scan and USPS provides a signature as the delivery record. The recipient may be asked for ID.
• Online labels must say "Insured." Insurance bought online must show the marking "Insured" in the indicia area of the label (DMM 503.4.3.4).
• Scans matter. To be eligible for indemnity, the piece must have at least one USPS processing scan or the customer must provide proof of insurance.
• Fees aren't refundable after acceptance. Insurance and Priority Mail Express insurance fees are not refunded once USPS accepts the item (DMM 604.9.2.4).

USPS Insurance vs UPS Declared Value

UPS doesn't sell insurance on its packages; it sells declared value, which raises UPS's liability. In the 2026 rate guide, value up to $100 is free, $100.01 to $300 is $5.10, and above $300 the charge is $1.70 per $100 of the total value, starting from the first $100. Maximum is $50,000 per package, or $70,000 enhanced maximum for eligible domestic Next Day Air packages.

USPS figures are calculated from the Notice 123 table; UPS figures from the UPS rate guide formula. At these values USPS is cheaper per package, but it stops at $5,000. For higher-value shipments, UPS is the only one of the two that can cover it. See how UPS declared value works.

How to File a USPS Claim

Deadlines are from DMM 609.1.4 and the USPS claims page. Either the sender or the recipient can file for damage or missing contents. For a lost item, the filer needs the original mailing receipt or the online label record.

What to submit

• Evidence of insurance: the mailing receipt, the outer packaging with the label, or for online insurance, the label record showing tracking number, postage, insurance fee, declared value, mailing date and ZIP Codes. If you submit only the outer packaging, indemnity can be limited to $100 for insured mail and Priority Mail Express.
• Proof of value: sales receipt, paid invoice, credit card statement, or a dealer's statement of value or repair estimate.
• Proof of damage: the recipient must keep the box, packing and contents. If USPS asks in writing and they aren't produced, the claim is denied.

File online at usps.com/help/claims.htm (preferred) or by mail on PS Form 1000. If a claim is denied, you can appeal within 30 days of the decision, and appeal once more within 30 days for a final review (DMM 609.6). Large-volume mailers and NSA customers who file many claims can apply through their Business Service Network or sales representative for the Bulk Indemnity Claims feature in the Business Customer Gateway (DMM 609.1.2).

Claims USPS won't pay

DMM 609.4.3 lists many exclusions. The ones that hit e-commerce shippers most often: loss after delivery or after the item was signed for, consequential loss, perishables that spoil, items too fragile to ship in the mail, damage without damage to the container, items not packed well enough to arrive undamaged, gift cards, and mail without complete sender and recipient names and addresses.

What to Check in Your Own Shipping

• Don't buy coverage for the first $100 on Priority Mail, Priority Mail Express or Ground Advantage if your labels qualify for included coverage.
• Make sure your platform prints compliant IMpb labels and transmits a Shipping Services file.
• Insure at actual value or below, never above.
• For orders over $5,000, USPS can't cover the full value.
• Calendar claim windows from the mailing date, not the date a customer complains.

As an operator and fractional COO who has worked on parcel costs from the inside, I'd add one more: compare your insurance spend against claims actually paid. If coverage is bought on every order and claims are rarely filed, the rules above are where to start.

Frequently Asked Questions

How much insurance is included with USPS Priority Mail?

Up to $100 for loss, damage or missing contents, when the label has the required tracking barcodes and you pay retail or commercial prices. Priority Mail Express and USPS Ground Advantage also include up to $100.

How much does USPS insurance cost in 2026?

From $2.80 for up to $50 of coverage to $9.05 for $500.01 to $600, then $9.05 plus $1.50 per $100 over $600, up to $5,000 of coverage (Notice 123, effective October 4, 2026).

What is the maximum USPS insurance?

$5,000 per item for domestic insured mail. Registered Mail can carry insurance compensation up to $50,000.

How long do I have to file a USPS insurance claim?

No later than 60 days from the mailing date. For lost items, wait at least 7 days for Priority Mail Express and 15 days for Priority Mail, Ground Advantage and other insured mail.

Is USPS insurance cheaper than UPS declared value?

At values from $300 to $5,000, yes. For example, $1,000 of coverage costs $15.05 at USPS and $17.00 at UPS. Above $5,000, only UPS can cover the value, up to $50,000.

Can I get my USPS insurance fee back?

No. DMM 604.9.2.4 says insurance fees are not refunded after USPS accepts the item.

Related Reading

• What Does UPS Declared Value Mean? Cost per $100 & Limits (2026)
• UPS Enhanced Maximum Declared Value 2026: The $70,000 Limit Explained
• FedEx Declared Value Fee 2026: Cost per $100, Limits and What It Covers
• UPS vs USPS vs FedEx 2026: When to Use Each Carrier
• Parcel Audit Services: How They Work & What They Recover in 2026

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This article is for informational purposes only. Carrier rates, surcharges, and policies change frequently — always verify current terms directly with the carrier for your specific situation. Have questions? Reach out to us — we're happy to help.