New type of insurance protects against porch pirates

See In the Battle Against Porch Pirates, People Will Try Anything: Insurance against theft at your front porch is the latest way shoppers are fighting back by Imani Moise of The WSJ. Excerpts:

"PorchPals, a subscription-based startup that launches nationwide on Monday, says it will cover the cost of your stolen packages. It costs $120 a year and covers up to $2,000 of deliveries, or up to three claims a year."

"There are also free ways you can avoid package theft, such as being at home when items are delivered or picking them up in person at a warehouse or store, though those options are less convenient." (another example of time being money-you can pay for this insurance and save yourself the time of having to go pick items up-CM)

"Even though the retailer doesn’t have to, it doesn’t want to lose a customer. Retailers typically pay carriers, including FedEx or the U.S. Postal Service, for shipping insurance, but that coverage ends once the package makes it to your door, and might not cover the full value of the purchase."

"Porch theft isn’t covered under standard credit-card benefits."

"PorchPals says it doesn’t charge a deductible and pays out all claims within 72 hours."

"The limit of three claims a year means the insurance could be least useful for the people who need it the most, says Divya Sangameshwar, an insurance specialist at ValuePenguin. Porch pirates tend to hit the same locations over and over. More than a quarter of people who have been victims in the past year say they have had three or more packages stolen, according to ValuePenguin."

[One woman] "moved to an apartment with a doorman after living in a building that was a favorite of porch pirates. Her new apartment costs hundreds of dollars more a month, but she likes the peace of mind." (another example how life is full of tradeoffs)

"Often, porch-pirate victims need to file several claims—with the retailer, shipping company, credit-card company or local police department. The process can take up to 14 business days, and there is no guarantee of your money back, Sangameshwar says. 

Package theft is typically covered by homeowners or rental insurance polices, but paying a $500 deductible to cover an $800 iPhone that was stolen doesn’t make much financial sense.

“With home insurance rates rising as quickly as they are, you probably don’t want to be filing a claim for frivolous things like a package going missing,” says Sangameshwar."

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