'Porch pirates' leading some customers to get their package deliveries insured

The rise of online shopping has also led to a rise in package theft by "porch pirates," leading some consumers to insure their purchases ahead of time.

In 2023, one out of every 180 packages was stolen, around 119 million thefts that caused Americans $13.4 billion in losses, according to Capital One.

A study of 2,050 respondents by consumer financial research group ValuePenguin found that 41% reported being victims of "porch piracy," compared to 35% in a 2022 study. A quarter of respondents said they had packages stolen within the past year, up from 21%. More than a quarter of respondents, 27%, said they had had three or more purchases stolen.

Consumers are responding in various ways.

In addition to the 22% of respondents that have installed video doorbells and other cameras to prevent package theft, another 23% have invested in shipping insurance.

Insurance specifically covering packages offers consumers an alternative to paying deductibles on other forms of insurance that may cover porch-piracy losses.

"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," ValuePenguin specialist Divya Sangameshwar told The Wall Street Journal.

Among the options is PorchPals, a shipping insurance startup that launches across the U.S. next Monday, the Journal reported. The company is aiming to help consumers stop ping-ponging between credit card companies and retailers while trying to get a refund.

Credit card companies "usually send you back to the retailer, creating an endless loop of finger-pointing," PorchPals co-founder James Moore told The Journal.

The company's insurance costs $120 for a year or $15 a month. Each customer can file claims for three stolen packages during each year of membership, with each claim having a coverage limit of $2,000, regardless of the value of the missing purchase.

Shipping company UPS also offers consumers and businesses shipping insurance via its UPS Capital insurance subsidiary. Its InsureShield plan covers in-transit business goods as well as items stolen via porch piracy.