Credit Card Purchase Protection: What You Need to Know

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Imagine you bought a laptop online for $800. But when the day finally arrives for it to… arrive, you head outside and see nothing. 

Porch pirates! 

You contact both Amazon and UPS for help, but since the package was confirmed delivered, all you get is an unsympathetic ¯\_(ツ)_/¯

Luckily, several popular credit cards offer purchase protection benefits. They can help repair or replace damaged or stolen goods purchased with that card.

Best of all, you may already have purchase protection. It’s just a matter of knowing when it applies and how to file a claim. 

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What Is Purchase Protection?

Purchase protection helps to cover the expenses for repairing or replacing damaged or stolen items.

Many credit cards offer it, usually with a limit of $500 or $1,000 per claim. This remains effective for 90 to 120 days after the purchase, depending on the card issuer.

Which credit cards offer purchase protection? 

Here are some examples of credit cards that offer purchase protection: 

• Chase Freedom Unlimited®
• Chase Freedom Flex®
• Chase Sapphire Preferred® Card
• The Platinum Card® from American Express*
• Blue Cash Everyday® Card from American Express*
• Capital One Venture X Rewards Credit Card

Just keep in mind that applying for several new credit cards can negatively impact your credit score, so research the right card for your needs before applying. 

COMPARE: Erika Kullberg’s Favorite Credit Cards

How purchase protection works

Let’s say your brand-new $800 laptop gets stolen. You file a police report, but you don’t really expect them to go busting down doors to find your Dell — so you accept it’s as good as gone. 

While theft of personal property may be covered by your homeowners or renters insurance, if your deductible is $1,000, it’s not worth filing a claim. 

Then, you remember you made the purchase using your Chase Freedom Flex card. Huzzah! So you file a purchase protection claim through Chase, attach your receipt and police report, and Chase credits you the maximum per-claim amount of $500. 

What Does Purchase Protection Cover? 

Purchase protection typically covers the cost to repair or replace new retail purchases that are damaged or stolen within 90 days of purchase. 

Let’s break that all down: 

• “New retail purchases” generally include items purchased brand-new from a retailer. Chase says it may also cover refurbished items if the item comes with a warranty.
• “Damaged” has a wide variety of definitions across card issuers. Capital One, for example, has a very specific list of qualifying damage that includes fire, smoke, lightning, rain, sleet, snow, and “spacecraft.” American Express says the damage must be “accidental.”
• “Stolen” encompasses items potentially taken without permission and not merely lost. For instance, filing a purchase protection claim for a stolen laptop with a photo of a smashed back window and a police report increases the chances of claim approval.

Keep in mind that purchase protection may not cover 100% of the purchase price of the item. If the item is simply damaged, your card issuer might ask you to get a quote for repairs before offering to replace the item. 

In addition, if you file a purchase protection claim for an item that’s part of a set — such as one speaker in a 7.1 surround sound setup — your card issuer will typically only cover that specific item, not the whole set. 

What Does Credit Card Purchase Protection Not Cover? 

The list of items purchase protection doesn’t cover is pretty extensive. You can read the whole list in your guide to benefits, but here are the highlights:

• Pre-owned items
• Animals or living plants
• Antiques or one-of-a-kind items
• Consumables and perishables
• Motorized vehicles
• Items that are leased or rented
• Land, buildings, and permanent fixtures
• Medical and dental equipment
• Items purchased for commercial use or professional competition (e.g. training materials or sporting equipment)

In addition, purchase protection generally won’t cover items that are:

• Eligible for a return and full refund
• Fully covered by your homeowners/renters insurance
• Lost or misplaced
• Damaged during delivery
• Stolen due to negligence (e.g., left in an unlocked vehicle or public place unguarded)

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Purchase Protection vs. Renters/Homeowners Insurance

There’s a lot of overlap between credit card purchase protection and your renters or homeowners insurance — and they can sometimes work together to maximize your protection. 

For example, credit card purchase protection and renters/homeowners insurance can both cover damage or theft of your personal property, even if the property was outside the home when the incident occurred.

The key difference is that purchase protection functions as secondary coverage. It typically requires you to file a claim with your insurance first. Then it may cover any outstanding amounts, such as your deductible.

When to use renters/homeowners insurance

Let’s say your new $800 laptop was stolen and your renters' insurance deductible is $500. File a claim with your renters' insurance first and get approved for $800, minus your $500 deductible. This puts $300 back in your pocket. 

You’re still out $500, though. Your credit card's purchase protection covers theft, too, so you then file a purchase protection claim with your credit card issuer. Attach your claim settlement showing that you’ve already filed with primary insurance and gotten $300. Seeing that, your credit card issuer approves you for the remaining $500. 

Filing claims with two separate providers can take lots of forms and a few weeks of waiting, but it increases your chances of getting most or all of your money back.

RELATED: Credit Card Rental Car Insurance: What You Need to Know

Purchase Protection vs. Extended Warranties

Credit card purchase protection and extended warranties share no overlap in coverage. 

That’s because both factory and extended warranties only ever cover manufacturer defects — i.e., parts failing entirely on their own.

When to use an extended warranty

For example, if you’re working on your laptop and the screen suddenly goes black for no discernible reason, that would likely be an issue covered under warranty. 

If you spilled coffee on your laptop and then it went black, now we’re talking about damage — not a defect. In that case, it might be included under your renters' insurance or purchase protection coverage (well, maybe with Chase and Amex, but certainly not Capital One). 

How To File a Purchase Protection Claim

Steps for filing a purchase protection claim vary by credit card issuer, but they generally follow this theme: 

1. Document your damage or theft as best you can. If possible, obtain a police report for the latter. 
2. File a report with both your renters/homeowners insurance provider (if applicable) and your credit card Benefits Administrator (usually via a telephone number listed in your guide to benefits). 
3. If instructed, get a written quote on a repair since you may need it for a damage claim. Issuers may require this to be from an authorized repair facility.
4. File a claim with your renters/homeowners insurance. 
5. If your renters/homeowners insurance denies your claim or only partially reimburses you (e.g., you’re still on the hook for your deductible), file a purchase protection claim with your Benefits Administrator. 

As for a timeline, card issuers typically give themselves 15 days to respond to a claim. It may be a similar story with your renters/homeowners insurance provider. It could be faster, but it could also be slower if they need to reach out for additional questions or documentation. 

In other words, don’t expect to get a check right away. 

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* Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.

Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.