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Ship with Fedex way underinsured??

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Beacon

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Here is my lastest dilemma:

I am a customer of a well known NY auction house. They approached me and asked if I would sell some antique jewelry I have. After discussing it with them I decided, ok, I''ll sell.

Since we are very close to the cutoff for their catalog they told me to ship the items via Fedex. Bright and early today, Monday, I called Fedex to verify their insurance. They told me they only go $500 max on insurance.

I called the auction house back and told them about this. My items are worth thousands of dollars and there are three of them. They told me, "oh it''s ok, clients do this sometimes and we''ve never had any problems with it."

Yikes!! I feel very uncomfortable to drop the things into the Fedex with only $500 insurance. I put them back into the safe deposit box. I would rather miss the sale than stress out over it.

Do you guys think the auction house is crazy? I kinda do. Would you ship it like this?
 

FireGoddess

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Never in a million, bajillion years would I do that!!! Ship fedex who has a max insurance of $500? I don't care if the auction house has never had a problem...there's always a first time, and you definitely don't want it to be you. I agree, they are crazy.
 

diagem

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Date: 2/12/2007 5:51:35 PM
Author:Beacon
Here is my lastest dilemma:

I am a customer of a well known NY auction house. They approached me and asked if I would sell some antique jewelry I have. After discussing it with them I decided, ok, I''ll sell.

Since we are very close to the cutoff for their catalog they told me to ship the items via Fedex. Bright and early today, Monday, I called Fedex to verify their insurance. They told me they only go $500 max on insurance.

I called the auction house back and told them about this. My items are worth thousands of dollars and there are three of them. They told me, ''oh it''s ok, clients do this sometimes and we''ve never had any problems with it.''

Yikes!! I feel very uncomfortable to drop the things into the Fedex with only $500 insurance. I put them back into the safe deposit box. I would rather miss the sale than stress out over it.

Do you guys think the auction house is crazy? I kinda do. Would you ship it like this?
Unless they have a FedEx account and can be sent to them insured through their insurance.... most Auction Houses are covered on FedEx shipments...
But dont forget to get a written confirmation from them prior to shiping.

If they want you to ship it un-insured (and hope all will be fine!!!) I would think 10x before submiting anything valuable to their sale!!!!

Watch your self!
 

UCLABelle

Ideal_Rock
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FedEx insurance limits vary by location...but all are $500 and under (I believe)

UPS can ship overnight with almost unlimitled insurance coverage.
 

ILikeBond

Shiny_Rock
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Can''t you ship it overnight w/ UPS?
I think they cover up to $25,000.
 

lehcarm

Shiny_Rock
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You could also try DHL. I''ve shipped with them before and had insurance for $2200.
 

diamondseeker2006

Super_Ideal_Rock
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Date: 2/12/2007 6:00:09 PM
Author: ILikeBond
Can''t you ship it overnight w/ UPS?
I think they cover up to $25,000.
As far as I know, only USPS ships with up to $25,000 for a regular customer, and it is not overnight. It is registered mail.

I did one time return something on a vendor''s FedEx acct., though. If you use their number different insurance applies.
 

Beacon

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Awesome ideas! I didn''t realize UPS can ship overnight insured. I''ll call them.

I did ask the auction house to let me ship it Fedex under their account numbver, but they won''t do that unless they personally pack the items themselves. Since I am in CA and they are in NY it''s a problem. They actually have people who will come to your house and pack it, but it is mucho expensive!
 

ILikeBond

Shiny_Rock
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312
Date: 2/12/2007 6:25:29 PM
Author: diamondseeker2006


Date: 2/12/2007 6:00:09 PM
Author: ILikeBond
Can't you ship it overnight w/ UPS?
I think they cover up to $25,000.
As far as I know, only USPS ships with up to $25,000 for a regular customer, and it is not overnight. It is registered mail.

I did one time return something on a vendor's FedEx acct., though. If you use their number different insurance applies.
All I know is the jewler setting the stone for me sent me the finished ring today for overnight delivery via UPS (and gave me the tracking number) and told me he had insured it for $15k - is UPS the same as USPS? Anyway, UPS apparently has an overnight delivery option with high insurance values possible.

(I realized USPS and UPS are probably not the same...)
 

diamondseeker2006

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Date: 2/12/2007 6:38:51 PM
Author: ILikeBond

Date: 2/12/2007 6:25:29 PM
Author: diamondseeker2006



Date: 2/12/2007 6:00:09 PM
Author: ILikeBond
Can''t you ship it overnight w/ UPS?
I think they cover up to $25,000.
As far as I know, only USPS ships with up to $25,000 for a regular customer, and it is not overnight. It is registered mail.

I did one time return something on a vendor''s FedEx acct., though. If you use their number different insurance applies.
All I know is the jewler setting the stone for me sent me the finished ring today for overnight delivery via UPS (and gave me the tracking number) and told me he had insured it for $15k - is UPS the same as USPS? Anyway, UPS apparently has an overnight delivery option with high insurance values possible.

(I realized USPS and UPS are probably not the same...)
Right... the JEWELER has an account with UPS that allows them to ship with higher insurance. You and I can''t walk in and just get that kind of insurance, if what I have always been told is correct.

Consumers can send by registered mail OR use the jeweler''s UPS or FedEx account number and pay the jeweler back for the shipping.
 

Beacon

Ideal_Rock
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I just had a long talk w/ UPS.

Unless I have a special account with them, like I would if I were a jeweler, they won''t do it. They won''t ship jewelry, coins, currency or loose stones unless you are a retailer with an account. An individual they won''t accept.

Other than those items above they''ll insure for 50K - but that doesn''t help me.


USPS will do it, up to 25K, but they are unpredictable in their arrival times and it could be quite slow so it won''t do.

At least I am not the only one who would rather not "chance it" and send it Fedex with such little insurance.
 

diamondseeker2006

Super_Ideal_Rock
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Beacon, can you ask teh auction house if you can use their FedEx account? They may not realize that you can''t have the insurance they do.
 

ILikeBond

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Date: 2/12/2007 6:44:46 PM
Author: Beacon
I just had a long talk w/ UPS.

Unless I have a special account with them, like I would if I were a jeweler, they won't do it. They won't ship jewelry, coins, currency or loose stones unless you are a retailer with an account. An individual they won't accept.

Other than those items above they'll insure for 50K - but that doesn't help me.


USPS will do it, up to 25K, but they are unpredictable in their arrival times and it could be quite slow so it won't do.

At least I am not the only one who would rather not 'chance it' and send it Fedex with such little insurance.
You can't send your three items separately, each separately insured for up to $50k? Still not enough coverage?

Maybe depending on how bad the auction house wants these things, if you explain the insurance situation, maybe they'll buy you a plane ticket to NY and have you just bring them yourself? Not to mention put you up in the W or something...?
 

Beacon

Ideal_Rock
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Hi DS, I did ask them that. They won''t do it unless they personally pack the item themselves.

Interestingly, they have a service that will come to your home and pack the stuff and ship it but it costs a LOT to do that. I don''t even know if that service will do overnight either.

What is remarkable is that they told me some of their clients actually send in stuff via Fedex way underinsured. What I notice here is that the auction house won''t ship it TO you w/o full insurance, but they don''t seem to mind the client taking the risk and mailing it in like that.

Fedex is a great service, but like FG said, there is always a first time. It''s too stressful for me - I know I would be tracking those packages every ten minutes!
 

Beacon

Ideal_Rock
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Date: 2/12/2007 6:51:20 PM
Author: ILikeBond

Date: 2/12/2007 6:44:46 PM
Author: Beacon
I just had a long talk w/ UPS.

Unless I have a special account with them, like I would if I were a jeweler, they won''t do it. They won''t ship jewelry, coins, currency or loose stones unless you are a retailer with an account. An individual they won''t accept.

Other than those items above they''ll insure for 50K - but that doesn''t help me.


USPS will do it, up to 25K, but they are unpredictable in their arrival times and it could be quite slow so it won''t do.

At least I am not the only one who would rather not ''chance it'' and send it Fedex with such little insurance.
You can''t send your three items separately, each separately insured for up to $50k? Still not enough coverage?
UPS won''t insure it at all.

They will insure stuff up to 50K but only if it is NOT jewelry, loose stones, currency or coins or food. They exclude those from the 50K insurable, which leaves me out in the cold.

They will insure it if they are "Works of Art", but mine fall into jewelry for their purposes.
 

RockDoc

Ideal_Rock
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Messages
2,509
Most of us in the trade, use outside companies for the insurance when we ship through UPS or Fedex. They do have packing requirements in order to insure items that are specific.

If the auction wants to sell your things badly, and insist you send them underinsured, have them agree that if the package is lost, or damaged, they will be liable.

UPS and Fedex have poor track records of paying claims. That is why those of us in the trade use an alternative insurer. They collect insurance money, but getting paid is another story.

We also will not disclose what''s in the package to UPS or Fedex either. Bad idea if they know what''s in it.

But even then, you will need some sort of the proof of value.... on antique items this may be difficult.

If you have Chubb insurance, shipping it through Fedex would be covered by them. Check to find out what requirements they have.


Rockdoc
 

Beacon

Ideal_Rock
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Date: 2/12/2007 6:51:20 PM
Author: ILikeBond


You can''t send your three items separately, each separately insured for up to $50k? Still not enough coverage?

Maybe depending on how bad the auction house wants these things, if you explain the insurance situation, maybe they''ll buy you a plane ticket to NY and have you just bring them yourself? Not to mention put you up in the W or something...?
That''s the best idea I have heard yet! Can you negotiate for me? I actually checked NY, I think they are scheduled for possible snow in the city tomorrow - oh no - here I am in Northern California.

I don''t think they''ll pay for me
. Maybe if I were selling a Van Gogh or a Klimpt they might go for it.
 

widget

Ideal_Rock
Joined
Nov 12, 2004
Messages
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Well, this is all very interesting, but I want to see what items you have that they want to put in their catalog!!!!


C''mon, Beacon....get busy with that camera!!


widget

PS: Another option would be to have it sent by an armored car...they''ll do overnight, I think. But they''ll only pickup from a place of business. It''s also pretty expensive.
 

Beacon

Ideal_Rock
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Roc Doc this is valuable information.

I don''t have these antique items insured right now but I have talked with Chubb about insuring my ering. I think insuring antique things could be tricky for establishing value, but it is doable. I don''t think I can get an outside insurance in place to meet the deadline though.

What I didn''t know is that Chubb insurance will insure jewelry while it is in transit with Fedex. Very nice to know. Thanks!
 

Beacon

Ideal_Rock
Joined
Jul 14, 2006
Messages
2,037
Hi Widget, would love to post a photo but fearful that I will run afoul of PS policies, since these items will (now looks like "eventually") be for sale.

What they are is three Faberge egg pendants. They were made in St. Petersburg before the Russian revolution. I hardly ever use them b/c I am just afraid of hurting them. I like owning them though and only figured on selling them cause they asked if I would and I''m not using them much and so on.

They are really neat - can you see why I do not want to dump them in Fedex with the $500 insurance?

They only sell Russian works of art and Faberge in NY in April. That goes for both the major houses in NY. So they want them NOW to get into the catalog.

If it doesn''t work out, and it looks dubious, I can sell them in their London auction in June, in which case all I have to do is get them to NY and they will ship them for me to the UK. Or I can wait til next year!
 

Adylon

Shiny_Rock
Joined
Nov 14, 2006
Messages
232
Go to fedex.com, open an account it takes 10 minutes max. You'll get a 15% discount right off the bat as well if you do this. Open it as a business. I just switched from UPS to Fedex (too many people complained about 7pm deliveries from UPS) and so far it's been great. They did not ask me for proof of business licence or anything so I don't think they would ask you either, all you need is a credit card and you're in business and ready to ship right away. The insurance value is based on volume and so is the discount if I remember. To start I forgot how much it was but it was 15% off and I think $50,000 coverage. Because of the volume I now do, I get a 35% discount and I can insure up to $1,000,000 :)
 

sfritz

Rough_Rock
Joined
Nov 22, 2003
Messages
74
Dear Beacon: We insure a lot of jewelry in transit. Don''t ship with any delivery service without appropriate insurance. We have had the best experience with US Postal Service. It''s a federal crime to interfere with USPS, and the post office takes losses very seriously. That said, USPS is not perfect.

Express Mail: This is overnight (sometimes 2-day) delivery. You can insure the package for up to $5,000. Unfortunately, that amount sounds insufficient for your needs.

Registered Mail: This can take 5-7 days. It''s extremely secure. You can purchase insurance for items valued up to $25,000. You must declare the item''s full value. The post office charges additional handling fees for items valued more than $25,000.

If that doesn''t work for you, I''d recommend that you insure the items with a separate insurance policy (under your homeowners or renters'' insurance or with a free-standing policy) and then ship. Be sure to ask about coverage during shipping and when the insured items are in someone else''s "care, custody, and control." For antique jewelry, you will probably need an "agreed value" policy, rather than a replacement policy.

Sue Fritz
Jewelers Mutual Insurance Company
 

Dee*Jay

Super_Ideal_Rock
Premium
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Mar 26, 2006
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13,359
Beacon, my ring was just shipped via Brinks (which is also what I think Widget was referring to in terms of "armored car"). I didn't pay for the service so I can't tell you what it cost this time, but earlier on in my ring process Kelege complained about sending me a sample to see because it was going to cost $250 each way for the shipping and insurance for a piece with a value of $50K, so maybe that will give you a loose guideline to go with.
 

widget

Ideal_Rock
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Messages
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Author: Beacon
Hi Widget....What they are is three Faberge egg pendants. They were made in St. Petersburg before the Russian revolution.
Wow. You know Beacon....it might not be the worst thing in the world if you don't sell them. Unlike 99.9% of the jewelry in the world, these might prove to be decent investments...do you have daughters?


widget
 

kenny

Super_Ideal_Rock
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Harry Winston put the Hope diamond in a Cigarette box and dropped it into the mail while his people were debating the safest way to ship it.

So the story goes.
 

oldminer

Ideal_Rock
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Messages
6,377
Unless you have a regular business in high value merchandise you cannot open a Fed-Ex account under their high value shipping arrangement called DVX. Consumers cannot use this.

Fed-Ex, in spite of a $500 insurance limit, does NOT insure gems or jewelry at all, not even if you paid for the coverage. You are not covered.

UPS can be used on jewelry and jewelry with diamonds and colored gems set into it for up to $50,000 in coverage. It is costly, but available to anyone. Consumers CANNOT ship unset gems or diamond via UPS, insured or not. Only jewelers who have private coverage can utilize UPS for loose gems. Not all jewelers have this. Get this in writing from the jeweler who you are sending it to. Do not send based on a verbal agreement for coverage. You will be sorry if there is a loss.

You can ship up to $5,000 via overnite USPS express mail. You can also ship 2 to 3 day delivery Registered Priority Mail with insurance up to $25,000. You will need to be able to PROVE the value in case of a loss. Losses are VERY rare with Registered Mail, but they happen from time to time. It is relatively risk free.

Consumers should always declare the full value. Never undervalue a shipment. undervaluation may lead to no coverage in case of a loss. If you don''t have evidence of value, get an appraisal first. Don''t guess. Don''t ship what you are unable to describe to a claim adjuster. Rushing a shipment is just about a certain way to have a problem.
 

FireGoddess

Super_Ideal_Rock
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Date: 2/13/2007 12:47:55 PM
Author: kenny
Harry Winston put the Hope diamond in a Cigarette box and dropped it into the mail while his people were debating the safest way to ship it.

So the story goes.
I would have died of a heart attack, still.


Beacon, what did you end up doing?
 

FireGoddess

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Date: 2/12/2007 7:26:52 PM
Author: Beacon
Hi Widget, would love to post a photo but fearful that I will run afoul of PS policies, since these items will (now looks like ''eventually'') be for sale.
If it isn''t against PS policies, I would love to see what they look like. If it is...I can just imagine!
 
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