I remember a time when USPS did reimburse postage if the entire contents was totally damaged. Before they changed their website format a ways back here's exactly what USPS said
"Loss or Total Damage
If the insured, registered, or COD article is lost or the entire contents totally damaged, the payment includes an additional amount for the postage (not fee) paid by the sender. Postage for Priority Mail Express is refunded under 604.9.5."
http://pe.usps.com/widgets/hyperlinking/highlighted-viewserver.jsp?id=229&title=DMM%20609%20Filing%2...
That page is no longer found. Instead it says
- Postage (but not the insurance fee) may be refunded in a claim if the insured article is lost.
What Insurance Coverage is Available (Domestically)?
ELIGIBLE Items
- Priority Mail Express®:
- Up to $100 insurance coverage included in price of postage with the following limits:
- $100 for merchandise
- $100 for document reconstruction
- $15 for cash
- Additional insurance coverage may be purchased for up to $5,000 for merchandise only
- Priority Mail®:
- Up to $100 insurance coverage included in price of postage with the following limits:
- $100 included insurance when Priority Mail postage is purchased through:
- Permit Imprint submitted by eVS, MMS, non-manifested, ePostage, and PC Postage (CPP only)
- $50 included insurance when Priority Mail postage is purchased through:
- Retail, package intercept, PC Postage (Commercial Base), Click-N-Ship, and Meters (includes IBI meters and Returns, but not Merchandise Return Service)
- Insurance coverage is for merchandise only
- Additional insurance coverage may be purchased for up to $5,000 for merchandise only
- First-Class Mail® and First-Class Package Service®: available for merchandise only (i.e. you cannot insure correspondence).
- Insured mail travels at the speed of the mail class it is purchased with
- USPS Marketing Mail™ (formerly Standard Mail®) and Parcel Select Lightweight® parcels (bulk insurance only)
- USPS Retail Ground™ (formerly Standard Post™), Package Services (Library Mail, Media Mail®, and Bound Printed Matter), and Parcel Select® pieces.
- Official government mail endorsed "Postage and Fees Paid"
Please Note: Insured mail must be mailed from a physical Post Office™ location unless purchased online
INELIGIBLE Items
- Parcels containing matter offered for sale, addressed to prospective purchasers who have not ordered or authorized their sending. If such matter is mailed, payment is not made for loss, missing contents, or damage.
- Coverage is not provided for consequential losses, delay, spoilage of perishable items or prohibited articles.
- Articles so fragile that they cannot be carried safely in the mail regardless of packaging.
- Articles not adequately prepared to withstand normal handling in the mail. As a rule, any mailable package should be insurable.
- Mail not bearing the complete names and addresses of the sender and addressee.
- USPS Marketing Mail letters, flats, and non-flat machinables.
- First-Class Mail and Priority Mail correspondence.
Additional Services
- When an item is insured for more $500, the following services can be purchased:
- Insurance Restricted Delivery (instead of Insurance, alone)
- Return Receipt
- Electronic Return Receipt
- Adult Signature Required and Adult Signature Restricted Delivery are available for insured Priority Mail Express, Priority Mail, and Parcel Select Non-presort.
- USPS Tracking®
- Hold for Pickup
- Return Receipt for Merchandise (for items insured for $500 or less)
- Signature Confirmation™ (for items insured for $500 or less)
- Signature Confirmation Restricted Delivery (for items insured for $500 or less)
- Special Handling-Fragile
Payment
- The fee and postage may be paid with postage stamps, meter stamps, or permit imprints.
Things to Keep in Mind When Purchasing Insurance:
- Because NO record is kept by the mailing Post Office facility, the sender needs to keep the receipt for making a claim.
- Insurance may be purchased for perishable items. However, the claim will not be paid if the item is spoiled.
- Postage (but not the insurance fee) may be refunded in a claim if the insured article is lost.
- Cash: When a claim is filed, money is replaced at the insured value
- After proof of value is shown (if the actual value was less than the insured amount, then only the actual value is paid) and
- After the claim process is completed
- Important: Customers sending a significant amount of cash should verify with the local office what is considered valid proof of value before mailing the item. Customers should also verify that it is packaged securely enough to protect a high value item from being harmed during regular mail processing.
