I learned about all this on a diamond (jewelry) forum, because people send rings, etc. for resetting, etc. There are professional appraisers on there who really helped educate us about shipping jewelry. People think when they are declaring value, that means the item is insured, but declared value is not insurance, and I think it is AWFUL that these shippers like FedEx and UPS take the money but don't explain that! I am taking this quote from a shipping service site:
"UPS will not ship items that are valued at over US$50,000. Jewelry has a lower limit, at US$500.
Should your high value item get lost or damaged in UPS’ service, they will only assume a maximum liability of US$100. It is
recommended to buy additional shipment insurance for items valued over US$100 to ensure coverage."
Here's info from the UPS site about declared value versus insurance:
Declared value is not insurance. The declared value of your shipment indicates UPS's maximum liability for a package that is lost or damaged.
www.ups.com
"
Declared value is not insurance. The declared value of your shipment indicates UPS's maximum liability for a package that is lost or damaged. UPS's liability is limited to US$100.00 (or local currency equivalent) on packages with no declared value. You can choose to declare a higher value for your shipment up to the maximum allowed in your country or territory, by entering a declared value in the shipping system used and paying an additional charge.
When you declare a value in excess of $100 (or local currency equivalent), you do not receive any form of insurance. Shippers desiring cargo insurance, all risk insurance, or another form of insurance should purchase such insurance from a third party*."
Basically, jewelry will not be insured unless the person shipping obtains third party insurance. (It's possible that a UPS shipping place offers third party insurance, but that would be an additional fee besides declared value.)
The exception is USPS Registered Mail, which I believe offers $50,000 of insurance (the last time I checked it) and includes jewelry. I think Priority Mail offers $5000 max. These are not ideal for obvious reasons, but I have used both successfully. I just looked and it appears overnight express also is up to $5000. So Registered Mail or getting third party insurance for FE or UPS are the options above $5k.
In order for any insurance to pay out if the package is lost, you do have to provide proof of the contents and value, such as sales receipts or appraisal, etc.