Two different questions
A cap answers how much a carrier could owe. A policy answers what gets paid and when. Sellers who conflate the two tend to discover the gap at the worst moment, holding a delivery scan and a tariff clause instead of a check.
Coverage basics
Declared value caps liability, it does not pay claims
Declaring a value tells the carrier the most it could ever owe you for one package, and nothing more; the money still depends on you proving the loss and the worth of what was inside. A protection product works the other way round, as a contract with stated terms, which is why the carriers themselves write in their tariffs that a declaration is not one.
Carrier tariffs quotedNotice 123 fee bandsPriced on a real parcel
A cap, not a promise
Every number below sits on one quoted box so the cost of coverage is legible next to the postage.
One real parcel, then the cost of covering it
The anchor is a box we actually quoted: a ceramic mug packed 6 x 5 x 5 in at 2 lb, Newark, NJ 07102 to Atlanta, GA 30303, run on 2026-07-28. USPS Ground Advantage came back at $8.48, which is the entire amount collected at checkout with SMKlog's charge already inside it.
SMKlog rates for the anchor parcel, quoted 2026-07-28
| Carrier | Service | Price | Quoted transit |
|---|---|---|---|
| USPS | Ground Advantage | $8.48 | 8-9 business days |
| UPS | Ground Saver | $10.18 | no window supplied on this rate |
| UPS | Ground | $10.67 | 2-3 business days |
| FedEx | Ground Economy | $12.42 | 6-7 business days |
| UPS | 2nd Day Air | $16.58 | 2-3 business days |
Five rates came back and none of them carried a coverage decision. That choice lives one screen later, and the amounts in the next table are what it adds.
What rides along already, and what more costs
Sources: USPS Notice 123 on pe.usps.com, prices effective 2026-07-12, re-checked 2026-07-28; the UPS Tariff/Terms and Conditions of Service, United States, and the UPS revised value-added services rates effective 2025-12-22, both on ups.com and fetched 2026-07-28; the FedEx Service Guide 2026 on fedex.com, effective 2026-01-05 and updated 2026-07-20, fetched 2026-07-28.
| Carrier | Liability that comes with the label | Cost to raise it | Ceiling |
|---|---|---|---|
| USPS | $100 on Priority Mail Express, Priority Mail and Ground Advantage | $2.80 covers value up to $50, $4.50 covers $100.01 to $200 | $5,000 of indemnity |
| UPS | $100 per domestic package | $1.70 per $100 of declared value, $5.11 minimum | $50,000 per package |
| FedEx | $100 per package on U.S. package services | $4.95 from $100.01 to $300, then $1.65 per $100 | $50,000 per package on ground and the main express tiers |
When a Shipper declares a value in excess of $100, it does not receive any form of insurance.UPS Tariff/Terms and Conditions of Service, United States, section 56, ups.com, fetched 2026-07-28
That sentence is the whole distinction in one line. A declaration lifts a ceiling and buys you the right to argue up to it. Filing still means showing what the item was worth, showing the packaging if the carrier asks for it, and accepting the carrier's own view of repair cost against replacement cost.
The mug parcel, declared at $300
| Line | Amount |
|---|---|
| USPS Ground Advantage label, quoted 2026-07-28 | $8.48 |
| Declared value band $200.01 to $300, USPS Notice 123 | $4.55 |
| Running total | $13.03 |
Coverage on this parcel costs roughly half again what the postage does, which is the sort of ratio that should make you stop and ask what the mug is worth. Add-ons are priced inside checkout against the carrier and route you pick, so treat this stack as arithmetic on two published figures rather than a quote.
What a claim asks you for
Proof of what the item was, proof of what it cost, the tracking record, and usually the packaging. Carriers exclude damage traced to inadequate packing, and UPS reserves the right to inspect the original materials before paying anything at all.
Where SMKlog protection sits
Ours is optional, bought with an eligible domestic parcel label before the box enters the carrier network, and capped at $500 of declared item value during the pilot. The full rules, including what is excluded, live on our shipping protection page.
Declared value, asked plainly
Is declared value the same as buying coverage?
No. UPS states in its own tariff that declaring a value above $100 does not give the shipper any form of coverage; it raises the ceiling on what UPS could owe. A protection product is a separate agreement with its own claim terms.
How much does it cost to cover a package to $300?
USPS lists $4.55 for the $200.01 to $300 band in Notice 123, effective 2026-07-12. On our anchor parcel, a $8.48 Ground Advantage label quoted 2026-07-28 from Newark to Atlanta, that band takes the running total to $13.03.
How much liability comes free with a label?
USPS includes $100 with Priority Mail Express, Priority Mail and Ground Advantage. UPS and FedEx each limit themselves to $100 per package unless a higher value is declared and the extra charge is paid.
What does SMKlog protection cover?
It is optional, sold with an eligible domestic parcel label, and capped at $500 of declared item value during our pilot. Freight, pallet, crated, oversized and restricted shipments are outside it, and claims need an invoice or other proof of value.