Declared Value?

Question

I just recieved a temporary phone and the shipping company is FedEx. On the reciept the declared value is $100. Do I have to pay it? Can someone please explain this fully to me? Thank you!

Answer 1

IF it came from another country, that's the value that you have to pay customs for.  If it's insured, that's how much it's insured for.

Answer 2

The sender of a package declares a value for the postal company's use only.  It is used if the package is lost or damaged and the sender wishes to make a claim against the shipping company.  You do not have to pay that much.  Usually the declared value may be slightly higher than market value becasue they wrap in the cost of having to go find another one right now at a local store to immediately replace the lost one, not the cost of one you may be able to get online at a good price.

Answer 3

For insurance purposes the package is declared to have a value of 100, which limits the amount fed ex might have to pay should they lose the package, or have it crushed or whatever.

No, you do not pay declared value. It is just a risk limiting value.

A declared value of 100 on an item of no real value does not mean Fedex insurer would pay 100. They might opt to replace the item of no real value should they lose it.