Devoted to the Insurance industry and all thing related

If you’re going to be shipping an expensive item across the country be sure and buy the correct amount of insurance.  Also be aware of the fact that most shippers will include depreciation when calculating how much they’re going to send you to replace a lost or stolen item.  

An article on the Community Press website gave an example of a woman who paid for $1,000 worth of insurance to ship a “Global Positioning System back to the manufacturer to be repaired under the warranty.”  The woman used DHL who lost the package and only paid her $400 of the $1,000 coverage.  

“In a letter defending its payment, DHL says it always depreciates electronic equipment 25 percent each year because electronics are constantly updated and revised.  Besides, DHL says, a check of many Web sites finds this model of the GPS is selling for less money than it settled upon.”

Basically if you’re going to ship a new item worth more than a few bucks consider that depreciation will be factored in to the insurance equation.  Has anyone had a similar experience with a shipper?