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Dispute USPS denied insurance claim at small claim court

My item ($250) arrived damaged at the customer.  I filed an insurance claim through USPS site. 

 

But it seemed USPS just kept sending claim denied letter and blanket statements on proof of value not acceptable, even though I've submitted the eBay transaction and the shipping label at eBay and insured value  is tied to the item price ($250).  

 

Any body been in the same situation?  Are we at mercy of the insurance claims department of USPS? 

Can we bring the case to small claims court?

 

Thank you for sharing any experience poisitive/negative outcome.

Message 1 of 36
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35 REPLIES 35

Re: Dispute USPS denied insurance claim at small claim court

Did you ship USPS Priority?  Did you purchase extra insurance?

 

When using eBay labels, sellers are covered for $50, or $100 for Top Rated sellers.  Insurance value is not tied to sold price, unless you get extra insurance when purchasing the label.  

Message 2 of 36
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Re: Dispute USPS denied insurance claim at small claim court

Yes.  Purchased extra insurance that matched exactly to the item price.

 

The focus is if there's a dispute with USPS insurance claim.  What can we do as an eBay seller?  They don't even honor eBay transaction as valid proof of item value.

Message 3 of 36
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Re: Dispute USPS denied insurance claim at small claim court

You could go to your local PostMaster and ask them for an explanation. Print out all the order details and any other info you have to show them.

Message 4 of 36
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Re: Dispute USPS denied insurance claim at small claim court

Hi Aprilmoviebuf. I'm not clear what you mean by "not tied to sold price".   Do you mean there's no insurance cost to be refunded?  I also purchased the Ebay label without any additional insurance, so am wondering if the claim I'm making should just be the cost of the doll they bought, not insurance. 

Message 5 of 36
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Re: Dispute USPS denied insurance claim at small claim court

I'm in the middle of filing a claim right now. I used the eBay label to ship priority USPS.  I took the pkg to USPS on March 19th after the buyer paid for it on the 17th.  It sat in a distribution facility for 10 days before going on to it's destination.   The buyer just got it today and immediately requested a refund.  She took pics and it looks like the box was partly opened and partly crushed on one side.  I can't see damage to the doll she bought except that, oddly, it looks like the eyes are missing. I hope that's just lighting, or maybe the doll is laying down (it has sleep eyes, so when closed the black eyelids look like a black hole. 
She is going to return it.   

The main problem I'm having is filing a claim using the pics she took that are on the eBay page. I have done a "print screen" but nothing happens, so Idk how to show USPS the box damage, and it's not likely she'll use the same box. 

I think that a small claims case would cost you more in time and filing fees than the amount you've lost. 

Message 6 of 36
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Re: Dispute USPS denied insurance claim at small claim court

The value of the item is whatever the buyer paid for it. Entering the wrong amount there always results in the claim being denied.

Message 7 of 36
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Re: Dispute USPS denied insurance claim at small claim court

By default there is no extra insurance.   There may be default insurance such as USPS Priority mail has a default coverage of up to $50.

 

The maximum extra insured value is the item price.  eBay simply won't allow you enter any price higher than the item price.

Message 8 of 36
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Re: Dispute USPS denied insurance claim at small claim court

There's no way to enter "wrong amount".   The maximum extra insured value is the item price that buyer paid.  eBay simply won't allow you enter any price higher than the item price. 

 

USPS will deny with whatever reason.  But this should never be one of it.

Message 9 of 36
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Re: Dispute USPS denied insurance claim at small claim court

Have you tried small claims?  I never used it before.  How much it typically cost?

 

Here's some other ways to save the image, 

1. If you are on Windows,  you can right mouse click on the image when the it is showing, then "Save image as..." in the popup window.

2. For the screenshot, try 3rd party screenshot software such as snagit to see if it help.  Here's a list https://geekflare.com/screenshot-tools-for-windows/

3. Alternatively, try ask the buyer to email you photos outside of eBay.

Message 10 of 36
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Re: Dispute USPS denied insurance claim at small claim court

I know this doesn’t help you, but I don’t even bother purchasing insurance anymore because USPS and UPS did not honor it in the past. UPS said if I didn’t pay to have them package the item it must not have been packaged good enough. USPS just denied the claims. Neither of them even gave me money back for insurance I paid. Now out of 3000+ sales I’ve had only the two were damaged (fingers crossed.)

however, they were my two most expensive items. I didn’t bother in small claims court so I couldn’t tell you anything about that, but usually when an item is damaged the item gets reported to FedEx, UPS & USPS and they pick the box with item up from the buyer and send it to the investigative team who then will ship it back to you.

Message 11 of 36
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Re: Dispute USPS denied insurance claim at small claim court


@pbai818 wrote:

My item ($250) arrived damaged at the customer.  I filed an insurance claim through USPS site. 

 

But it seemed USPS just kept sending claim denied letter and blanket statements on proof of value not acceptable, even though I've submitted the eBay transaction and the shipping label at eBay and insured value  is tied to the item price ($250).  

 

Any body been in the same situation?  Are we at mercy of the insurance claims department of USPS? 

Can we bring the case to small claims court?

 

Thank you for sharing any experience poisitive/negative outcome.


@pbai818,

 

What was the item that you are asking about? I don't see anything in your sold listings that sold for that much.

 

image.png

 

Message 12 of 36
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Re: Dispute USPS denied insurance claim at small claim court

Item: https://www.ebay.com/itm/154265098628   for 0-512GB drive data recovery.

eBay order: 05-08359-21353  Sold on: Mar 8, 2022 at 11:26 AM

USPS Tracking#: 9405808205498642834906

 

Why you ask? Can you help resolve this issue? 

I am filing the small claim court forms now...

Message 13 of 36
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Re: Dispute USPS denied insurance claim at small claim court

It's a sad reality... 

 

I've been purchasing insurance loyally for every pricey item I ship.  Hopping it will be of use one day when I need it.

 

When we make a sale, ebay take a cut, shipping company take a cut, insurance take a cut, and finally government take a cut.  But when we run into issues, no one comes to our protection...

Message 14 of 36
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Re: Dispute USPS denied insurance claim at small claim court


@moneytospay wrote:

Hi Aprilmoviebuf. I'm not clear what you mean by "not tied to sold price".   Do you mean there's no insurance cost to be refunded?  I also purchased the Ebay label without any additional insurance, so am wondering if the claim I'm making should just be the cost of the doll they bought, not insurance. 


I am referring to the insurance coverage that is built into the USPS Priority service ($50, or $100 for Top Rated sellers when label is purchased via eBay) vs. additional insurance purchased by seller when label is purchased.  

 

In other words, if they approve a claim, they will only pay the $50.00, no matter what the item sold for.  Unless a seller purchases extra insurance.  It is relatively inexpensive.  

 

USPS has gotten pretty darn stubborn when it comes to paying claims.  One thing to keep in mind, they will not pay if a damaged item is returned to the seller.  That is considered reshipping, and the reason they won't pay a claim then is they have no way of knowing in which shipment the damage occurred.  

Message 15 of 36
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