PorchPals, an insurance product designed to cover the loss of stolen packages, has opened a wait list to subscribe, which is now available nationally, the company said by email Monday.
The problem is large and growing alongside e-commerce itself, though assessments of it vary. More than 30% of those surveyed this year by Insurancequotes.com say a package was taken from their porch, doorstep or building lobby, up from 24% in 2023 and 26% in 2022.
According to Capital One research, in the U.S. last year, one of every 180 packages delivered was stolen, totaling 119 million. U.S. consumers lost $13.4 billion to package theft, with each package worth $112.30 on average, per that report. According to Security.org, which compiles research on a variety of home security issues, $12 billion worth of deliveries were swiped last year, with as many as 58 million U.S. households affected in the last 12 months.
PorchPals’ protection, which costs $15 per month or $120 total with an annual subscription, is linked to a customer’s debit or credit cards. The company touts the coverage as broad and efficient, noting that it applies to deliveries from a variety of retailers, that a claim can be filed in minutes and that reimbursement is sent within 72 hours of an approved claim.
“PorchPals is designed to make package protection seamless, affordable, and most importantly, reliable,” co-founder James Moore said in a statement. “With porch piracy on the rise, Americans need to feel confident that their purchases are safe — from the moment they click ‘buy’ to the moment they pick up their package.”
The company was co-founded by New York Giants football player Adoree Jackson and developed “by a team of seasoned enterprise, insurance, and consumer product experts,” per its press release. The company is also backed by insurers Newline Group, OdysseyRe and Lockton, a spokesperson said.
Consumers already have some recourse when it comes to stolen deliveries. Retailers will often refund customers who never received their package. Some rental and homeowner policies cover such thefts, though their deductibles may be higher than the value of the package’s contents, or expensive purchases could exceed limits, according to Western Coast Insurance Services. Coverage for this type of theft may be able to be added to a policy, Western Coast said. Some credit cards also already offer porch piracy protection, covering items that have been stolen before they are in your possession, according to credit reporting firm Experian.
Those coverages sometimes require the victim to file a police report, while PorchPals does not, according to a company spokesperson.
There are some limits to the PorchPals coverage, though. Subscribers can only make up to three claims each year, totaling $2,000 or less. The company plans to increase that in the future, as it scales, but with additional guardrails to thwart fraudulent claims, a spokesperson said.
