How do I file a USPS insurance claim for a lost or damaged package?

First, check the package can be claimed

USPS pays claims only on mail that carried postal insurance: insurance you bought, the $100 included with Priority Mail and Ground Advantage, Priority Mail Express, COD and Registered Mail with insurance.

“A customer may file an indemnity claim for insured mail, COD items, Registered Mail with postal insurance, or Priority Mail Express.”

Media Mail and First-Class Mail include no insurance, so an uninsured Media Mail package that goes missing can't be claimed. USPS's route for it is a Missing Mail search (when to file one).

“USPS may not legally pay compensation for uninsured lost or damaged articles. If your uninsured mail is missing or delayed you may request a Missing Mail Search.”

Step by step

1. Wait for the window. Lost: from day 15 after the mailing date (day 7 for Priority Mail Express) to day 60. Damaged or missing contents: as soon as it arrives, and by day 60. The dates for your mailing date: USPS claim time limits.
2. Find the tracking number. It's on the label record, the package label and the receipt; USPS's claims page says tracking and label numbers run 13 to 34 characters.
3. Print the label record as evidence of insurance. For a label bought online, DMM 609.3.1 asks for a printout from the software you bought it with showing the tracking number, postage, insurance fee, declared value, mailing date and both ZIP Codes. If you bought the insurance online, 609.3.1 also asks for evidence of mailing: a postmarked firm sheet (PS Form 3877) or a SCAN form acceptance scan followed by a USPS scan (proof of mailing). For the included $100, the label record or receipt shows the service you paid for.
4. Gather proof of value, such as the completed sale record or an invoice (what USPS accepts).
5. For damage, photograph everything and keep the box, the packing and the item; USPS can ask for them at a Post Office (who keeps what).
6. File online at usps.com/help/claims.htm with a free USPS.com account. You can save a claim and finish it later, and upload proof of value as a .pdf or .jpeg.
7. Watch for the decision. USPS usually decides within 5-10 days and pays approved claims in 7-10 business days. A denial can be appealed twice, 30 days each time (how to appeal).

“Proof of value is required and should be submitted online as an uploaded file (.pdf or .jpeg). Evidence of insurance must be retained by the customer until the claim is resolved.”

Damage claims: the extra evidence

“For damaged claims, you’ll also need to provide an estimate of the repair costs from a reputable dealer.”

“Do not reship items that were not damaged. Save them with the damaged items.”

DMM 609.2.0 puts the duty to keep the box, the packing and the contents on the addressee, and a claim is denied if they aren't produced when USPS asks in writing (who keeps what). Damage from shock with no damage to the box isn't payable (DMM 609.4.3), so photograph the outside of the box as well as the item.

Filing by mail instead

If you can't file online, DMM 609.1.5.2 lets you mail PS Form 1000 with proof of value to the address on the form; USPS sends the form if you call 1-800-332-0317, option 9. For a package with several extra services, include the original receipts for all of them. USPS's claims page lists that line's hours as Monday to Friday, 6 a.m. to 6 p.m. Central.

Tracking says delivered, but the buyer says it never came

DMM 609.4.3 lists two delivery cases as not payable. One: “Loss, damage, or have missing contents, that occurred after delivery by the USPS.” (DMM 609.4.3) The other: “Loss after items signed for by the addressee, the addressee’s agent, or delivery employee if authorized under the applicable standards.” (DMM 609.4.3)

For Priority Mail Express sent without a signature, DMM 503.4.1 settles what counts as delivery:

“For Priority Mail Express items not requiring a signature, a delivered scan event constitutes a valid delivery, and no indemnity for loss is paid.”

For Priority Mail, Ground Advantage and insured mail, the DMM doesn't say how USPS weighs a delivery scan against a buyer who reports no package, so the answer comes from USPS's review of the claim. What you can do: ask the buyer to check around the delivery address, file a Missing Mail search from day 7, and keep the label record and sale record ready in case you file. On valuable items, a signature service or insurance over $500 puts the signer's name on USPS's delivery record (proof of delivery).

Worked example: a lost Ground Advantage package

Had the game sold for $140, the included $100 would cap the payment unless you had bought coverage for the full $140, which costs $4.50 at Notice 123 prices. USPS says insurance you buy replaces the included $100 instead of adding to it (insurance prices).

After you file

“USPS usually sends claims decisions within 5-10 days.”

• Approved claims are paid in 7-10 business days, per USPS's claims page, and USPS never pays more than the item's actual value.
• If you and the buyer both file, USPS pays whoever filed first and is approved (DMM 609.5.5), so agree on who files.
• If USPS finds the package after paying you, you can take it back but must repay the full claim if it's undamaged (DMM 609.5.7).
• Keep the label record, receipts and any damaged item until the claim is closed.

Edge cases that change the payout

• Only the box as evidence. “(If only the outer packaging is submitted, indemnity can be limited to $100 for insured, $50 for COD, $100 for Registered Mail, and $100 for Priority Mail Express.)” (DMM 609.3.1)
• No USPS scan. “In order to be eligible for insurance indemnity, a mailpiece must have received at least one USPS processing scan or the customer must provide proof of insurance” (DMM 503.4.3.1).
• Cash and gift cards. “Except for Registered Mail, the maximum indemnity for negotiable items (defined as instruments that can be converted to cash without resort to forgery), currency, or bullion, is $15.00.” (DMM 609.4.1) Gift cards, lottery tickets and similar items aren't payable at all (DMM 609.4.3).
• Collectibles. A sales receipt, invoice or a reputable dealer's statement of value is required (DMM 609.4.1; proof of value).
• Coverage bought too low. “The USPS does not make payment for more than the maximum amount covered by the fee paid.” (DMM 609.5.1)
• Label from a selling platform or label service. DMM 609.3.1 accepts a printout from the application used to print the label and buy the insurance. DMM 609 covers postal insurance; if the coverage came from a private insurer instead of USPS, its claim goes through that insurer.