USPS Insurance is a SCAM and FRAUD

[apexcollectingcom]

I am as legitimate of a seller as there is. My feedback is 100% with 1200+ feedback. I sell collectibles such as coins, currency, old magazines, sports cards, etc. I purchased insurance for an item (as I have done many times before) and the item got damaged during transit. In other words while in the possession of USPS. The photos provided to me by the seller clearly shop the Priority Mail Large Flat Rate box was crushed and extremely mishandled in transit.

The item was turned in to a USPS Post Office as part of the claims process. After multiple appeals, my "Final Appeal" was also denied. The item in question sold for $499.99. I took and paid for insurance up to only $400 which covers the cost of the item when I purchased it. I also do this to save a little on the cost of insurance by taking on some of the risk - this concept is known as self-insured. 

Anyway, I am **bleep**. All these times I paid for insurance without a claim and now USPS stiffs me by not living up to their part of the insurance agreement. As of this moment I do not have possession of the item. It is late night as I write this so I have to wait until tomorrow morning to call them in an attempt at retrieving the item.

I look to the community, especially to those with experience, for advice on how I should proceed. This is honestly the worst I have ever felt as an eBay seller. Aside from never purchasing USPS insurance, I don't know what to do. Any advice is appreciated, thank you.

[themagicmountain]

Why did they deny it?

I have heard of USPS sticking it to people on damaged items and not holding up their end of the insurance deal

[a_c_green]

You said that you've gone through multiple appeals with them: what are they telling you is the basis for denying the claim each time? You mentioned "the photos provided [...] by the seller" though you presumably meant "by the buyer," but who has possession of the damaged item at this moment: the buyer, or the USPS?

[apexcollectingcom]

Their reason is "improper packaging". I have experience in packing. The thing was packed like a tank. Believe me, it took a lot of effort on their part to damage the contants of the box - which was crushed.

[apexcollectingcom]

Each time the reason given was "improper packing". See my previous post.

[labratdolls]

Many years ago, I had an Antique Bisque doll that was double boxed ( look at my feedback for packaging ) wrapped in multiple layers of bubble wrap and Both boxes were crushed as though they had been run over by a truck. USPS tried the same stuff on me too. I never did get my money despite all the documentation. I don’t even bother insuring anymore. I just “self-insure”. I have spent too many hours trying to get my money back for USPS issues. It’s worse than filling health insurance claims!

[slippinjimmy]

I look to the community, especially to those with experience, for advice on how I should proceed.

Never use insurance provided by the carrier. Third-party insurance is generally cheaper and easier to file claims.

U-Pic, ShipInsurance and others.

[beautybylynn]

I often purchase USPS insurance, and have never had one denied. How did you pack it? If you don’t use enuf packing supplies to protect it, they will deny the claim

[chrysylys]

You might want to read this, under 'Not Allowed':

https://pages.ebay.com/help/policies/identity-user-ids.html

[mr_lincoln]

@apexcollectingcom

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@apexcollectingcom wrote:

Their reason is "improper packaging". I have experience in packing. The thing was packed like a tank. Believe me, it took a lot of effort on their part to damage the contants of the box - which was crushed.

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Improper packaging in this instance is impossible if the USPS system works properly ... like on all the other thousands of packages that flow through their bulk centers daily.  Be it an empty box or the weight maxed out for the flat rate used a box does not get crushed on thier system when handled properly, period.  I would go in and see your local Post Master Face to Face.

[rolenboy01]

All I can tell you is they really dig in their heels on claims over $100.

[little_angel]

I have submitted claims to USPS through the last 5 years and never had one denied.  I pay for extra USPS insurance for all items over $100 dollars and my maxium claim amount was about $300 for one item.  the USPS form doesn't even require proof of damage.  I just attach my ebay sales record as proof of value on the online form.   Now if you want a dime out of fedex their form is rediculous, you have to specify the type of cardboard, what kind of packing material, how it was packaged, (was corners supported)...  and at least in my experience fedex damaged more of my packages than USPS ever did, but individual expierence can vary.  I will ship via USPS instead of fedex for these reasons.

[chipper01work]

I've been involved in 4 damage claims in my eBay life. Two as the seller and shipper with USPS, both of those were paid by USPS.  One as a buyer involving USPS, that one was paid. One as the shipper with Fedex and that one was paid also. None of the four were even initially denied, they were all paid on the first try.  Every time I read one of these threads I am amazed.

[rolenboy01]

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@little_angel wrote:

I have submitted claims to USPS through the last 5 years and never had one denied.  I pay for extra USPS insurance for all items over $100 dollars and my maxium claim amount was about $300 for one item.  the USPS form doesn't even require proof of damage.  I just attach my ebay sales record as proof of value on the online form.   Now if you want a dime out of fedex their form is rediculous, you have to specify the type of cardboard, what kind of packing material, how it was packaged, (was corners supported)...  and at least in my experience fedex damaged more of my packages than USPS ever did, but individual expierence can vary.  I will ship via USPS instead of fedex for these reasons.

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I never implied it was ridiculous or anything I just stated my experience and the experience of many others, for the record I've never had a claim denied by the USPS but they did refuse to honor the full value of more than one of my claims over the years, all I'm saying is the likelyhood of a claim getting denied or questioned or devalued goes up dramatically if the item is over $100.

[papyruspapillo]

I did receive a large package, a few years ago, which literally had been run over by a truck. The seller and I worked it out privately; USPS was no help. USPS will do anything to avoid paying a claim, even omitting steps in the procedure and denying it has done so.