Package Theft Insurance?

As online shopping figures skyrocket, so does the unfortunate trend of package theft!  This disturbing trend known as “porch piracy,” has left consumers frustrated and financially burdened.  We have ALL seen home videos of these brazen criminals stealing packages!

According to Adobe Analytics, Americans spent $41.1 billion between Thanksgiving and Cyber Monday.  This means millions of packages are going to be delivered over the next few weeks.

Home security firm Safe Wise reports, nearly 260 million packages were stolen in the USA alone (totaling $16B) in 2023, a big increase from prior years.  Thieves often target packages left on doorsteps or in apartment lobbies.  This situation is out of control in many areas. 

This is where “package theft insurance” can come into play.  Package theft insurance can be a safety net for online shoppers to protect against the financial loss of stolen deliveries and gain peace of mind, which decreases stress levels.

Let’s examine the alternatives:

1. Homeowners Insurance: Many homeowners' policies offer limited protection for stolen packages.  This usually comes with exclusions and deductibles.  This is NOT the time to put in small homeowners’ insurance claims, as premiums will likely go up by more than the value of the packages.  Many insurance carriers (due to $ Billion disasters) have raised rates considerably and pulled out of coastal states, such as Florida and California. 
2. Retailer and Credit Card Protection: While some retailers and credit card companies offer refunds and/or replacement guarantees for stolen items, these protections often have strict limits.  This includes having to report the incident within a certain timeframe, and credit card benefits may exclude certain types and categories of expenditures. 
3. Vendor and or Shipper Services:  Certain companies such as Amazon, UPS or USPS offer their versions of theft protection plans which are often bundled with premium delivery subscriptions.
4. Package Theft Insurance: A company called “PorchPals” offers a subscription-based policy that protects deliveries as they say, “no matter where you shop online!”  More on this option below.

If you are not interested in this type of insurance, you do have some alternatives to protect your prized purchases better:

1. Delivery Lockers: There are several options for using secure delivery lockers. Retailers like Amazon and FedEx can provide them.
2. Package Tracking: Stay updated on the delivery times and be there, have someone there or alert your building concierge as to the time range of the delivery.
3. Security Cameras: Install doorbell cameras or other surveillance systems to deter thieves.  Some of these systems can be connected to the local precinct.
4. Neighborhood Cooperation:  Try to coordinate with neighbors to pick up packages when you are not home or on vacation.

PorchPals has been featured on FOX, the Wall Street Journal, and Good Morning America.  They offer a subscription-based policy for $120 per year premium.  This unique policy is linked to a credit or debit card.  Once registered, you’re automatically covered for every online purchase with no extra steps. 

Their website is www.PorchPals.com.  They claim it takes minutes to file a claim, and you will get reimbursed in 72 hours.  Currently, there are limits of $2,000 worth of claims or 3 claims in a year.  In my opinion, this type of claim process will be much easier than trying to extract money from a homeowners insurance policy or shipping company!

My take is that this is going to be an ongoing problem that will get worse before it gets better.  Criminals have gotten more sophisticated and can “cash or wash” stolen checks that are stolen from mailboxes.  These options are something to consider, especially if you are a big online shopper!

Happy Holidays!