Credit Card Benefits: Purchase Protection Review for Theft, Damage, or Loss

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Overview

Suppose you  just bought a new laptop and it gets stolen or you bought a new tie and it gets splattered with spaghetti sauce. Many credit cards offer a benefit called Purchase Protection to reimburse the loss. The benefit covers damage and theft which occur within the first few months after the purchase, typically with a maximum benefit of $1,000. This insurance is automatically built-in and doesn’t need any special signup. The details of this Purchase Protection vary by the card issuer.

While most cards only cover damage and theft claims, Chase cards also have Loss Protection as well in the event you lose the item. Amex Platinum, Delta Reserve, PRG, and Gold offer this as well.

Coverage Details

• Amex: max $1,000 per claim, $50,000 per year; coverage is for theft of damage that occur within 90 days.
  • File claims here or call 1-800-322-1277. File a claim within 30 days.
• Chase: max $1,000 per claim, $50,000 per year; coverage is for theft of damage that occur within 120 days.
  • To file a claim, go to this link to file a claim. Or call 1-888-320-9961 to file a claim with a human. File a claim within 90 days.
• Citi: max $1,000 per claim, $50,000 per year; coverage is for theft of damage that occur within 120 days (90 days for residents of New York state).
  • File claims here or by calling 1-866-918-4670. Return all claim documentation within 180 days.
  • Beginning 9/22/19, the Double Cash and Dividend cards will no longer have the Purchase Protection benefit.
• Discover no longer offers any purchase protection benefit starting February 28, 2018.

Premium Card Benefits

Most cards have a maximum Purchase Protection benefit of $1,000 per claim and $50,000 per year. However, a few premium cards offer a higher limit of $10,000 per claim. This includes the Chase Sapphire Reserve, Citi Prestige, Amex Platinum cards, Delta Reserve, Premier Rewards Gold, Gold Card, Ameriprise Gold and Fidelity Gold.

Exclusions

Some possible Purchase Protection exclusions:

• animals and live plants
• cash equivalents, rare coins or stamps
• tickets
• consumables like food and medicine
• motor vehicles
• medical equipment
• products purchased for resale
• damage caused by war or natural disaster
• items which weren’t reasonably safeguarded
• services purchased

Other Details

• Used items are not covered; manufacturer-refurbished items will probably be covered
• Split-tender payment would typically be covered, but only up to the amount charged on the card
• Purchase Protection is typically secondary, not primary, the claim needs to first be submitted to any other insurances; Citi offers Primary coverage everywhere besides New York state
• Shipping & handling costs are not reimbursed
• Sales tax is reimbursed
• You might need documentation for the claim; for example, you can get a police report in the event of theft or a fire report for damage caused by fire