Purchasing insurance via Ebay

[atidachshav]

Hello,

Couldn't post this where I wanted to in Selling, but as long as I get an answer I'm happy 🙂

So I had a question about insurance when purchased via ebay.

Once I sell an item and decide to add insurance to cover my end in case the package goes missing- what happens if the item does go missing? I understand that ebay / PayPal covers the buyer, but I'm sure not out of their pocket... Ebay allows you to ensure the item up to the price it was sold for, which begs the question- what about the cost of the item for me? If my cost was X and it sold for Y and I can insure it for Y and not X + Y, then what happens if it gets lost? Ebay requires me to refund them (which I get from the USPS insurance) and then I'm SOL for what the item cost me? Please let me know how this is supposed to go down and if I have it all backwards...

Thanks!

[rock.star]

No an item can not be insured for more than it sold for.

[kensgiftshop]

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@atidachshav wrote:

Once I sell an item and decide to add insurance to cover my end in case the package goes missing- what happens if the item does go missing? I understand that ebay / PayPal covers the buyer,

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If a package goes missing before it gets delivered, you have to refund the buyer.

Then you file a claim with the carrier, if the package was insured.

[atidachshav]

Thanks for the response!

So this means that I'd refund the buyer > I'd file a claim if insured and get back the amount it was insured for (=Item selling price) > and I would still be out of money for the amount the item cost me.

Bottom line, me insuring the item protects the buyer to get refunded (at no additional cost to me), but I am "screwed" out of my item cost.

If this is correct? I fully understand and thank you for your answers.

[kensgiftshop]

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@atidachshav wrote:

Bottom line, me insuring the item protects the buyer to get refunded (at no additional cost to me),

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No, you insuring the item covers you, the shipper, not the buyer.

The buyer has Ebay's MBG to get their money back from the seller.

[nobody*s_perfect · Accepted solution]

There's no reason why you should expect to be reimbursed for the item's original cost.

If you sell an item for $100, insure it for $100, and it gets lost and you have to reimburse the buyer, but the insurer pays your claim for $100, then in the end you have $100 in your pocket just the same as if the item had not been lost.

[bonjourami]

Im confused, why would you be out of the money you paid for the item? If your item sold for more than you paid for it, and you insured the item for what it sold for, you made a profit on what you paid for the item. Thats all you can expect.

[atidachshav]

Ok thanks everyone.

As I started to type it out in detail why I might in fact be confused, it became very clear to me that it all works out just fine when insuring it for item selling price.

Item sells for X and gets lost, I get 2X from original payment + insurance.

They get their money back, I keep my money.

Thanks for your help, stating at home must be getting to me 😃

[bonjourami]

LOL..we are all getting a little buggy I think.