A guide to parcel insurance - Do you really need it?
If you don’t often send or receive parcels, then you might not have ever really considered parcel insurance or even really thought about its purpose.
In our guide to parcel insurance, you’ll find out exactly what it is, you'll learn more about package delivery insurance and how to deal with rejected claims.
What is parcel insurance?
If you’re wondering "can you insure a parcel?", then in simple terms, the answer is "yes you can".
Parcel insurance, also sometimes referred to as shipping insurance, protects shippers and their goods against accidental damage, loss or theft.
As with any type of insurance policy, it will cover the cost of any missing goods if your parcel doesn’t arrive at its destination, if it’s stolen or if it arrives, but is damaged.
How much is it to insure a package?
The cost of insuring a package is dependent on different factors, including how much the package is worth, how much it weighs and where it’s being sent to.
Prices for insuring a package will also differ depending on who you insure your package with.
You can usually check the cost of insuring a package on a delivery service’s website, or you might have to go into a physical store such as the Post Office where the team can advise you on the cost of package insurance and whether it's worth getting.
Royal Mail parcel insurance
Royal Mail is one of the biggest deliverers of mail in the UK and they have their own parcel insurance known as consequential loss cover in the event that items are lost, broken, delayed or missing.
Are Royal Mail parcels insured?
Royal Mail parcels aren’t automatically insured, but you can purchase consequential loss cover for your packages when sending them via Royal Mail.
The cost of parcel insurance from Royal Mail varies depending on how much you want to pay for the cover and how much your parcel is worth.
Below, you can find a table of how much parcel insurance costs with Royal Mail and how much compensation you can expect to receive if you need to make a claim.
What it costs
Post Office parcel insurance
Post Office parcel insurance depends on whether you send your package via Royal Mail or Parcelforce. Take a look at the Post Office website for more details on the level of compensation that they offer if your package is lost, damaged or delayed.
DPD parcel insurance
DPD is another parcel delivery service that delivers packages all over the world. They offer standard cover for parcels up to the value of £50, but you can purchase insurance add-ons so that you can insure parcels up to the value of £5000.
In order to see how much DPD parcel insurance costs, you will need to check out their parcel protection calculator as the cost of their insurance depends on the weight of your parcel, where you're sending it to, the value of the package and how you would like it to be sent (e.g. first class, tracked, next day delivery etc).
Independent parcel insurance
As well as insuring your package through delivery companies such as Royal Mail and DPD, there are also independent parcel insurance providers such as Parcel Monkey and Secursus.
These also offer international parcel insurance so you can be confident that your parcel is insured if you’re sending it overseas.
Why am I not being given full insurance for my lost parcel?
In some circumstances, you might not be given full insurance for your lost parcel. For example, if you receive a notification saying that your parcel has been delivered to a safe place such as in your shed or it’s been left with your neighbour but it’s gone “missing”, then the parcel company may say that it’s your responsibility if the delivery driver claims they left it somewhere safe.
What is Secursus parcel insurance?
Secursus is a high-value parcel insurance provider and they claim to insure almost any type of good that's being delivered, including things that many other parcel insurers won’t cover.
They refund your goods at their highest value, even if other companies won’t, so they’re a great parcel insurance company to look into if you’re wanting to send high-value goods via the post.
What do package delivery policies not cover?
Some goods are excluded from being covered by package delivery policies, so before you insure your package, ensure that you’ve checked whether it will definitely be covered in the event that you need to make a claim if it is lost, damaged or delayed.
Some of the items that many package delivery policies won’t cover include:
- Musical instruments
- Flowers, plants and seeds
- Paintings, prints and other types of artwork
- Cigars, cigarettes and other types of tobacco substances
- Optical equipment such as telescopes
It completely depends on the parcel insurance company as to whether they will cover your goods or not. Companies such as Secursus might offer insurance for almost any type of package or good, but other companies won’t, so it’s always best to double-check before you send your package.
Is parcel insurance worth it?
Determining whether parcel insurance is worth it or not depends on the type of parcel that you’re sending.
For example, if you’re sending a high-value parcel that’s worth a lot of money, then you will probably want to get it insured in the event that anything happens to it. Without parcel insurance, if your high-value package is damaged or lost, you may end up losing a lot of money, so it’s always worth thinking about.
This is also true if you’re sending a parcel that contains something of a sentimental value. While it might not be able to be replaced if it’s something of sentimental value, you will have confidence that it has a little bit of extra protection if it is insured.