About Purchase Protection

Purchase Protection is another shopping benefit offered by card issuers. It provides short-term insurance for items you buy, usually for 90 to 120 days, and during that period you can receive reimbursement from the card issuer for damage caused by any reason, or for items that are lost or stolen. For example, the AMEX Platinum card covers items purchased within 90 days, up to $10,000 per item and up to $50,000 per card per year; coverage for natural disaster-related damage is $500 per item.

However, each credit card and card issuer has different Purchase Protection policies, with certain restrictions on the type of item purchased and the purpose of the purchase, and different reimbursement limits. So this article summarizes the common Purchase Protection policies offered by major card issuers.

General Terms for Purchase Protection

The basic rules for Purchase Protection are generally similar across issuers, with differences mainly in coverage amounts and details.

What’s Covered

Take the Chase Sapphire card as an example: the coverage is very broad, essentially including anything you buy. It even covers items purchased outside the United States and items bought as gifts for other people. These are broadly referred to as eligible items. My understanding is that special products are excluded, while ordinary items bought for use are generally covered.

What’s Not Covered

In general, items that are easy to damage, items that naturally wear out with normal use, items where damage cannot be clearly determined, and items purchased for resale or business use are not eligible for standard Purchase Protection. For example:

  • Animals and plants
  • Antiques and collectibles
  • Boats, cars, airplanes, motorcycles, farm machinery, etc.
  • Software
  • Items purchased for resale or business use
  • Jewelry and watches
  • Medical devices
  • Houses and real estate
  • Items used for rental
  • Traveler’s checks, tickets, gift cards
  • Used or refurbished products

If you are not sure whether what you bought is covered, it is best to contact customer service before making the purchase.

Important Notes

Keep in mind that reimbursement will not exceed your actual loss. If an item is lost during shipping, you should first pursue the carrier’s responsibility. In addition, credit card Purchase Protection is the last layer of protection; if your item already has its own insurance coverage, that insurance must be considered first.

How to File a Claim

To submit a claim and receive Purchase Protection reimbursement, you need to provide the following materials:

  • The credit card used for the purchase at the time: it generally needs to be active and in good standing, otherwise reimbursement may not be available
  • The purchase receipt: ideally it should show that you paid with that card, and it must include the purchase date and the exact name of the item purchased (a serial number is even better, if available)
  • Proof that it was stolen or lost: for example, a police report after filing a police report
  • Or detailed repair records: documentation of the repair and the cost after the item was damaged

Claims can be submitted online or by calling customer service. I recommend uploading the documents online if possible, and then calling to discuss and provide additional materials if there are issues.

Purchase Protection Policies by Issuer

Citi

Most Citi cards offer Purchase Protection benefits, but Citi Double Cash recently removed this benefit. Purchase Protection applies to items damaged or stolen within 90 days of purchase, with a maximum reimbursement of $10,000 per claim and $50,000 per year. Reimbursement will not exceed the amount you paid for the purchase.

Chase

Chase’s Purchase Protection amounts vary by card. In general, coverage ranges from $500 to $1,000 per item, covers losses incurred within 120 days after purchase, and provides up to $50,000 per card per year.

The example below shows a coverage amount of $500 per item for Sapphire Preferred, while Sapphire Reserve has $1,000 per item. Of course, the final amount still will not exceed what you paid for the item.

AMEX

AMEX is probably the best issuer when it comes to Purchase Protection. It has a dedicated page listing the specific terms for all cards in this area.

AMEX’s Purchase Protection amounts also vary by card. In general, coverage ranges from $1,000 to $10,000 per item, covers losses incurred within 90 days after purchase, and provides up to $50,000 per card per year. It also covers certain losses caused by natural disasters, up to $500. The example below shows the Purchase Protection details for the AMEX Platinum card, which covers up to $10,000 and is very generous.

Other Issuers

Other issuers are listed below:

  • Barclays: covers purchases made within 90 days, up to $1,000 per claim and up to $50,000 per card per year.
  • Capital One: called Purchase Security. Available only on Visa Signature personal and business cards. Covers purchases made within 90 days, up to $1,000 per claim and up to $50,000 per card per year.
  • US Bank: available only on Visa Signature cards. Covers purchases made within 90 days, up to $500 per claim and up to $50,000 per card per year.
  • Wells Fargo: not available on all cards; check your card’s benefit guide for details. Covers purchases made within 90 days, with reimbursement limits of $500 to $1,000 per claim and up to $50,000 per card per year.

Discover cards removed Purchase Protection for all cards in 2018.

Conclusion

Purchase Protection is a card benefit created through cooperation between credit card issuers and insurance companies. I have used cards for a long time and have never filed a claim myself, although I have had items break before and never thought about using this benefit. If you ever have something you just bought get damaged or stolen, you should definitely consider using the benefit. Friends who have used it say that as long as the documentation is complete, getting reimbursed is still fairly easy. AMEX, in particular, is very generous.