When it comes to securing your valuable shipments, having the right insurance coverage is crucial. One method that simplifies the process of calculating insurance rates is the concept of Declared Value Units (DVUs).
In this blog post, we'll explore the ins and outs of DVUs and how they function within the shipping insurance landscape.
What Are Declared Value Units (DVUs)?
Declared Value Units (DVUs) serve as a standardized measurement used in calculating shipping insurance cost. Each DVU is calculated as a whole number, and represents $100.00 worth of the declared value of the items being shipped. This means that for every unit of declared value, you'll be charged an insurance premium based on the predetermined rate.
Calculating Insurance Costs with DVUs
The calculation of insurance costs based on DVUs is straightforward. Let's take an example: if the insurance rate is set at $0.35 per DVU, and you're shipping items with a declared value of $269.00, the calculation works as follows:
Determine DVUs: Divide the declared value by $100.00 and assign a whole number to the result.
$269.00 / $100.00 = 2.69, rounded up equals 3 DVUs.
Insurance Premium: Multiply the number of DVUs by the insurance rate.
3 DVUs x $0.35 = $1.05.
Benefits of Using DVUs
The use of DVUs in shipping insurance brings about several advantages:
Simplicity: The DVU system simplifies the process of calculating insurance costs based on declared values, ensuring transparency and ease of understanding.
Precision: By utilizing DVUs, you ensure that your coverage matches the precise declared value of your items.
Flexibility: With DVUs, your insurance cost corresponds directly to the value you're shipping, allowing for tailored coverage.
Declared Value Units (DVUs) offer a streamlined way to determine insurance premiums for your shipped items. By using DVUs, you ensure accurate coverage that directly aligns with the declared value of your parcels. This method simplifies the insurance calculation process and provides a clear understanding of the costs associated with protecting your shipments.
For reliable shipping insurance that utilizes the Declared Value Units model, consider U-PIC Shipping Insurance as your partner. We're committed to offering straightforward and tailored coverage to ensure your valuable shipments are in safe hands.