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UPS Damages $1,700 Worth Of Shipped Items, Admits They Messed Up, Still Won't Pay

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Awesomely-named reader DrSpaceMonkey tells us he shipped some stuff to himself during a move, discovered it was damaged, and now can't collect on his insurance.

Last week he wrote:

Okay, so I just moved across the country, and in the process, decided to ship a few things to myself via UPS. After doing some quick investigation, I found out that the only way to properly insure your stuff is to pay to have it packed at a UPS Store. Okay, no problem - there was one pretty close to my old place, and it would still be cheaper than paying a moving company to babysit a couple boxes (not taking too much stuff with me). So I bring a couple boxes of clothes that I packed myself and a computer that I paid the UPS store to pack. I get the extra damage insurance and at the recommendation of one of the staff, I print out a price quote for how much the computer would cost to buy over again since I no longer have the receipt ($1700). Fast forward a couple days, and I get my stuff delivered at my new place on the other side of the country. Only problem is the computer doesn't work. After looking at the packing materials, they didn't use any anti-static plastic, they just shoved it in the styrofoam chips. Oh boy, this is gonna be as fun as a trip to the dentist. So I call the UPS Store as per instructed to make a claim for damage. After some mixups on arranging to have a UPS driver come by and inspect the packaging, I'm finally told by UPS that the damage was caused by improper packing by the shipper (in this case, the UPS Store which is a franchise) and they can't discuss any of the claim details with me. After delaying a week or so, the UPS Store finally tells me that they won't be paying squat because the damage is "functional" instead of "physical", whatever the hell that means. The store manager even claims that she explained this difference to me when I originally called to inquire about shipping my things (she did no such thing according to my notes). She then tells me that the store owner will be handling things and gives me the contact info. So I call up the owner, and the guy tries to go all insuance company on me. Here's a partial transcript of the recording I made (yes, I decided to start recording calls):

Him: How do I know that the computer wasn't broken before?
Me: Well, normally what insuance companies normally do in situations like this is they check that what they're insuring is properly working before they insure it. Your staff at any time could have plugged the computer in and determined that it was working before they packed it. That's their failing, not mine.
Him: Well, my insurance coverage which you took the premium for, is saying that it's not covered. It didn't say that the package wasn't packaged incorrectly. There was no finding from UPS that we were responsible.
Me: That's not what I was told by UPS
Him: That's fine, if you'd like to proceed in other ways, then that's fine. But I'm not paying $1700
Me: So I just want to make sure I have the sequence of events right - I come in to your UPS store, pay your staff to pack
Him: You know what? You're talking to a lawyer, I don't need the sequence of events explained to me If you want to proceed through a small claims or some other avenue, then that's up to you.

So he essentially lawyers up and tells me to take him to court. Nice, huh? Oh, he DID offer to return my shipping and insurance costs (less than 10% of the cost of the computer they broke). Since UPS and the UPS Store are 2 different companies, UPS isn't doing anything. UPS Store corporate HQ is a little puzzled by this - they've told me that I paid the franchise to pack and ship it, computer died because they messed up, they should be paying. They're doing an internal thing and some district rep is going to be calling me. Fingers crossed.

We asked him for an update, and the news wasn't fabulous:

Well, the regional guy hasn't been in touch with me yet, but I did get another email from the UPS Store manager. She informed me that they won't pay the claim because policy dictates that they need original purchase receipts. This is different than what I was told when I shipped the computer. I didn't know how much to insure it for because I didn't know how much it was worth anymore, and I was told at the time that wasn't a problem and I should just get a price quote from Dell.com. So I borrowed their in-store computer, spec-ed out a similar system, printed out the cost summary and insured it for the purchase amount. The manager stapled the quote to her copy of the shipping receipt.

Oh, and I was cc'ed in on a response email from someone at the UPS Store corporate HQ who said that the manager's claim of needing original receipts was bogus because they had paid out claims before without them.

Sounds as though he's making slow, steady progress in prying the $1,700 from UPS's cold talons. But something tells me they're messing with the wrong SpaceMonkey.

(Photo: catastrophegirl)

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If they continue to stonewall and if you can prove they admitted their mistake in writing. I'd say take them to small claims court. Odds are they'll refer the case to their liability insurance who will just cut you a check rather than defend the suit in court. Most jurisdictions let you sue for up to $10,000 these days.

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I've seen spurned-customer blogs before, and this sounds like a good story for one. I'd love to read the whole story, complete with pics and docs and such, as it developed. Sounds like you're doing good work, keep it up!

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Wow...this is just absurd. Kudos to the OP for taping conversations, although it's really depressing that we as consumers have to spend that much time/energy/money getting what we deserve and have paid for.

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OK, not to blame the OP, but I have NEVER had a computer delivered to me in "anti-static plastic". In fact, every computer I can think of has been delivered in static prone styrofoam or regular foam. Isn't the case of the computer itself supposed to ground any static sensitive components? And what exactly was damaged on the computer? I find it VERY hard to believe EVERYTHING on the computer was fried.

Also, if it was a Dell, can't you call up with your computer number and get a original receipt?

Sorry to be such a negative nelly, I would just like some clarification.

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Just to be a complete douche-waffle, I would begin a small claims court suit for my time and damages. Doesn't cost a whole lot, they have to show up or they lose, and you already have a ton of evidence.
Once the manager sees the paperwork land on his desk, they'll probably spit out the refund quicker than a pigeon over a BMW dealership does his business.

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@Chumas: Agreed. The UPS Store manager is probably betting that the OP won't know or care how to get what he wants via small claims court. He's got a solid case. I hope this can be resolved another way, but I think it'd be great if the OP includes damages for his time, billed to an arbitrary hourly rate...hopefully something absurdly high.

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@MrEvil: In order to take someone to small claims court, you have to sue them in their own town. Makes it a little tough as he moved across country.

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Pack your own stuff, folks. I seriously can't stress that enough.

If it wasn't physically damaged and just "doesn't work", there's no way UPS is going to pay for that.

And UPS would never, ever, ever plug in your computer to make sure it's working before shipping it. EVER.

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@TheStateOnDVD!_GitEmSteveDave: The ground has to *come from* somewhere - in your house, it comes from the ground plug of the outlet, which is in turn wired to a physical ground in the... ground. It travels via the power cord to your computer, and connects to the case there. If the computer is not plugged in, it is not grounded. That said, i doubt shipping peanuts killed the computer, unless they were poured INSIDE of it.

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Probably a simple contact problem. That, or if using a really heavy tower cooler, could be motherboard damage. But more than likely it has nothing to do with the case not being wrapped in anti-stat, since, well.. no one does that. Anti-stat is used for components mainly. Indeed immediately jumping on UPS for the price of the entire computer is just that little bit unreasonable.

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Did he opt for "replacement cost" insurance? I learned the hard way that "insurance" will pay for the cost of your item minus depreciation, unless you specifically pay for the "replacement cost" option. He doesn't mention which type of insurance he opted for.

Also, did he take the computer in anywhere to have it looked at? It could be loose ram or a bad power supply.

If it were me, I'd have the computer checked, so that I have it in writing that the problem IS that there is static damage. I wouldn't want to go to court and say "Your Honor, I think it could be the static from the Styrofoam, but I can't prove that and don't know for sure..."

I admit, I don't know how this works "for sure", but the few times I've filed an insurance claim, the preference was always to repair the item if possible. It never occurred to me that I should demand a brand new item instead, or a check for the cash value of what the item would be new.

I would highly recommend he get UPS to issue the "packer's fault" finding in writing so he has that to take to court.

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Having made a few moves and having computers not work upon arrival, thats not unusual. Has the OP checked to make sure that everything is plugged in on the inside of the laptop, that nothing has come loose such as ram, cables, etc? Those things come loose rather easily then being shipped. Last time I ordered a computer, the power cord on the inside came loose from the motherboard, simple fix on my end. Really need to diagnose what is wrong with the computer other than "doesn't work". It may be a very easy fix to avoid a lot of time and trouble.

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Like an above poster I am also curious about what doesn't work on the computer? Has the OP taken it to someone to have it looked at? I have shipped computers in the past and have received others that will not post let alone boot up. Most of the time it's because a component (memory, video card, CPU) has come loose during shipping. Most likely the hard drive and data are still intact though.

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@Jakuub: IIRC, when installing computer components, I was always told to have the computer UNPLUGGED.

In all my years installing RAM, Vid Cards, HDD's, etc... I have unplugged all cords(video,ps2,usb,etc), the power, then pressed the power button to clear the caps, and finally touch the now un-energized computer on it's frame to ground myself to the computer.

Have I been doing it wrong?

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@Vanilla5: True, as you would need a monitor, and at least a keyboard if the computer is one that won't boot unless it detects a keyboard.

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@TheStateOnDVD!_GitEmSteveDave: I agree. I have a hard time believing that the packing job killed the laptop.

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@DrMorison: No, he gets to sue in HIS small claims court! (But once I had a very similar case get removed to federal court as a scare tactic by the corporation involved.)

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@Jakuub: Grounding the case isn't necessary, because the metal case of the computer will be constructed as a full cage around the inner machine, preventing any charge from building any potential across the sensitive components of the computer, at least in theory.

Of course, any exposed ports are fair game.

Computer equipment typically ships new in some sort of anti-static bag or overwrap, and then in the polystyrene foam. An exception might be made for a static-insensitive component (e.g. an empty chassis) but generally, this is the case.

Back on point, probably it isn't that everything is fried, but that doesn't change the fact that, for the end user, the computer doesn't work. He may not know or care (nor should he have to) why his computer doesn't work. UPS damaged it, UPS needs to make good, whatever that amounts to.

Also, please remember, not all who own or use computers are technical adepts. If my computer is b0rked, I fix it. If my wife's computer is b0rked, however, she doesn't fix it; I do. There is an unfortunate attitude amongst technical adepts to demand that all around us be technical adepts, also, and guess what? It just doesn't happen and that's tough shit.

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@Vanilla5: But he said UPS needed to be the one to pack it in order to qualify for insurance.


My question, does anyone get paid out on large insurance claims? We've seen variances of this story repeated with every major carrier. Is there ever a happy ending? I ship a lot of expensive, fragile goods through ebay and always get it insured but if push comes to shove, will it actually do me any good?

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@TheStateOnDVD!_GitEmSteveDave: Nope. You can also get those anti-static wrist cables that keep you grounded to the frame. I've always done what you do, though. Unplug, open the case, ground myself to the chassis and get on with my day. Never had issues in 10 years.


Not blaming the OP here, but the story seems a bit questionable (though definately plausible). How was he traveling across country to his new home? By plane, car, etc? Couldn't he of paid an extra baggage fee for the flight for his clothes if there wasn't that many, and carried on the laptop? Just seems weird that he would only choose to send a laptop and clothes.


I'm so confused.

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@verucalise: Ooops, I'm assuming this is a laptop, yet it's never been stated. If it was a full desktop computer that would change the situation, which could complicate a move My bad yo.

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$1700 seems to be asking a bit much. What exactly is wrong with the box? Was there a 3rd part used to inspect it to see what's wrong with it?


From what I read, OP received comptuer, computer doesn't work ie doesn't turn on, OP asked for full insurance money. Scuse me for being skeptical but a single loose wire that was disconnected while shipping could cause the computer to not turn on or work.


There's just too many questions to ask here before jumping the gun and asking for money.

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We've watched this business model trickle down from health insurance to extendend warranties and now to shipping insurance.


You pay for insurance now and if/when something goes wrong, the company refuses to pay. I call it the "you give us extra money and we keep it" business model. Frankly, I don't understand why people are surprised when this happens.


When I had kids I increased the amount of life insurance I carried. Before they would agree to the increase, the insurance company sent a nurse to my house to give me a brief physical. When they were satisfied as to the state of my health, they wrote the policy. It is up to the insurer (in this case The UPS Store) to satisfy themselves as to the condition of the thing they are insuring before accepting the insurance payment. The fact that the insurance payment was made HAS TO mean that The UPS Store was satisfied as to the terms of the deal (that they were insuring a working computer worth around $1700). Whether or not he turned on the computer in the store, or provided the appropriate documentation is irrelevant - The UPS Store, which has final say, accepted the terms of the deal when they accepted payment.


If UPS can prove the guy mailed a broken machine then they don't have to pay. The "how do we know you didn't drop it right before walking into the store" argument isn't valid. First of all, it presumes guilt ("there's a chance you might have cheated us, so we're going to assume you did"), and second, if that was a valid concern then it's up to the store to satisfy themselves that they're not being cheated before agreeing to insure the item.

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@verucalise: I've never moved anywhere and not brought my computer personally with me(years of carefully culling porn from the net is just too much to bear to lose :D ). From what I read from the article, he wanted to ship these things so he wouldn't have to hire a mover, so it seems he was driving everything else himself.

@kc2idf: I understand computer equipment in pieces is usually wrapped. But as I said, I have never had an assembled computer ship in a bag, but rather in a big ol box w/styrofoam. Heck, my Mac G3 had pieces of sheet plastic static clunged(?) to the case to prevent possible scratches, in addition to it being entombed in styrofoam.

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@MrEvil:


Sigh, whatever happened to just suing for the price to fix the computer? Get it checked out by a 3rd party, get a quote, then have the insurance pay for it.


Nowadays the steps have changed to:
1. broken item
2. complain to company
3. ???
4. profit!

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@MrEvil:

Been there, done exactly this.

When I sued, I sued the UPS depot I dropped the package off and I sued the CEO (you can name multiple defendants here).

A couple of weeks later UPS' own lawyer (not the insurance company) called me to settle. I offered to settle at the cost of the package + $50 (which is what I had to pay to file). They accepted it right there on the phone and made good on it.

UPS, at least in Canada, only used their insurance company to refund the cost of the additional service they screwed up on (COD), which was about $8 or so.

GOOD LUCK! When I sued I attached ~40 pages of evidence, all the way from the clerk signed papers to receipts for the items to 3 months of transcript logs of phone conversations. I scanned and copied everything onto legal size paper so I could add a unique footer to each item so I could easily point to them in court. I expect my thoroughness is what sealed the deal.

And in my case, they only admitted to their mistake on the phone. But even if they didn't, there was no proof they collected the COD and there WAS proof UPS and I had a signed agreement that UPS would insure the package against that.

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UPS is OK for books and stuff, but I'd never send something remotely fragile or valuable via UPS if I could avoid it. I've had stuff that UPS shipped arrive at my place looking like it was kicked across the US instead of being trucked.

That being said, I've never had an insurance claim with Fed Ex either, so I can't say how difficult it would be to get your $1,700 bucks back from them... Know why? Because my stuff arrives undamaged with Fed Ex!

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I had something like this happen with the USPS. They needed purchase receipts, so I printed out all my Newegge receipts, gave it to them... I got a refund. Granted, USPS "pro-rated" the costs by funding the absolutely CHEAPEST PARTS ONLINE to equate their "value" to. I think they chose eBay for some.

But once I provided the receipts from where I bought them? No problems. Took a month to get the money though, and again, it was only 50% of the value due to how they pro-rate it.

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Just a heads up, Liability coverage as traditionally carried by most small businesses aren't meant to cover every possible scenario (I am speaking about the liability coverage the store would carry, not the coverage on shipping the customer purchased). Most liability policies have a "your work" exclusion. I would think failure to properly pack a box (when that was exactly what "your work" was in this situation) would fall under that exclusion. This type exposures are more traditionally contemplated under a Professional type policy (but I have never heard of this type store obtaining a Professional policy).

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So the moral of this story is, make sure your stuff is "physically broken" when UPS shows up to inspect it... easy enough.

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It isn't the lack of anti-static packing material that killed the system. Static is not some magical force that zaps computers. Static to INTERNAL parts kills systems. Static to the exterior does nothing, as the machine is surrounded by metal shielding (to prevent RF problems) that will take care of any static charge.

The OP needs to find out what the problem actually is before filing a claim. If the problem is not due to physical damage, there is no claim. Shipping insurance is insurance against physical damage, not a guarantee that it will work on arrival. There is a difference.

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OP followed UPS's directions then had his computer delivered damaged. UPS admitted the damage was their fault, then delayed, and is now giving OP the runaround to avoid paying.

I hope the OP sues and wins for replacement costs of the shipped items, plus any and every other incidental cost he has incurred. I don't know how many valid public complaints it will take to force UPS to stop doing this to people, but I hope it happens soon.

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@TheStateOnDVD!_GitEmSteveDave: Most new components or laptops come in a static bag, true. But, just because the OP believes it was static discharge that killed his PC doesn't necessarily make it so. My money's on a flat drop from a good height. You know, just so the box hits with a flat side and doesn't show damage.

Seems like alotta the UPS guys are strong as an ox, and just about as caring with my packages....

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What is wrong with the computer? Why not diagnose? You might only need a new mother board or power supply. I highly doubt everything is toast. Does it turn on at all?

Saying the computer doesn't work does not help in this situation.

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@Vanilla5:

"pack it yourself" doesn't work if UPS claims they have to personally pack the item according to the rules for the insurance coverage.

So, damned if you do, damned if you don't.

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@Radoman:

For books, it's all about USPS Media Mail, the absolute cheapest (an slowest) way to send large amounts of heavy books or other media around the country. It only costs about $22 to ship 50 pounds.

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@TinkishDelight: UPS does pay out larger insurance claims - with more scrutiny over the issue, of course.

But I recommend packing it yourself so you KNOW it's ok and could withstand a fall or belt burn. Learn how to pack with newspaper and things other than peanuts and learn how to do a 6-sided tape. Write the tracking number on the outside of the box on a side that the label is not on (not the bottom). I also recommend taking it to your local hub or center for shipping. This Pack & Ship Guarantee business? *sigh*

Just pack it yourself.

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@NegativeNelli_GitEmSteveDave: I also don't see how this packing method destroyed the PC. Did the OP put the PC in a static bag in the trunk of his car on the way to get it shipped?


The problem the UPS Store has is that they didn't prove that the PC worked before they packed it.

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Since Consumerists are usually not too computer savvy I'll explain a few things:

1) Anti-Static packaging is used for components. THe computer does not need the packaging any longer while the components are inside because the case protects them.
2) UPS should not have to pay for an entire computer. Most likely there is only one part that is damaged and that "damage" is most likely a loose contact. The OP should get a repair estimate from a technician send it over to UPS and have them approve that repair. It'll probably be less then $100.
3) The OP can look up his original receipt through Dell. Pricing a current computer with current parts is not fair. He needs to tell them what a computer (that's a few years old) is worth.

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I've emailed the consumerist about a very similar story I'm going through currently with the UPS STORE damaging an item I sold on ebay. I even included pictures! But, the consumerist never posted it or even emailed me to say thanks for your story. WTF?

I sold a rare vintage McIntosh MC2200 amplifier on ebay for $599. The buyer got a deal since it was worth $1000+ according to the audio bluebook.

It weighed 80lbs and was fairly fragile so I decided to have the UPS store pack it for the buyer. The buyer paid the UPS store directly with a credit card. He insured it for $1000 (it's actual value).

The amp arrived damaged. The buyer called the UPS store and filed the claim. He has been getting the run-around for 2 months so far. They want either of us to send them a link to the ebay sale showing what my buyer paid for the item. I assume they want this so they can pay him the $599 that he paid for the item.

We both refused to send them this info but did send them links from the audio bluebook and a site that has one of these amps for sale currently (Their price is $1200!).

It shouldn't matter what my buyer paid for the item on ebay. It should only matter what the item is worth AND what it was insured for.

I sure hope the UPS store pays out on this claim in full. I'm probably going to get a negative feedback on ebay for the transaction even though I had nothing to do with the packing or shipping of this item.

I will never use the UPS store again.

Their pack and ship promise" is nothing but an advertising gimmick.

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@Corporate_guy: If the OP goes to court with what he's presented here, he'll lose because he can't demonstrate the specific damages. Not starting does not equate to $1700 replacement cost. Take the system to be diagnosed - the diagnosis fee is likely compensable as consequential damages - and then we'll actually know what the damages is - loose cables is a pretty good bet.

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@katstermonster: He may also be working at the assumption that he has to sue in the jurisdiction where the UPS store is located, as well.

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this happened to me as well. Moved across the country and shipped it all thru UPS. 2 boxes had things damaged. Some glass pots and picture frames smashed and the other box my tivo and external hard drive didnt work anymore. I filed a claim for the pots and such for under 100 bucks and got that no problem. No investigation or anything. I filed a 300 claim for the other box and they gave me shit for that saying it was my fault. They only wanted me to take pictures and send it to an email address. UPS is a damn joke and ive never shipped with them since. That insurance claim is another excuse to gouge you out of more money while the shippers play kickball with your box.

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@bishophicks: I could not have said it better myself. Insurance used to be an educated bet against the possibility of whatever one was insuring against. It WAS a win-win for everyone when done correctly. Now it has become just another 'revenue stream' for most businesses. Why spend the time gauging your risk on the insured item/service when fighting tooth and nail against every claim is more effective and profitable?

OP should not count on the good faith of UPS or it's franchisee and should file a small claims suit.

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@bishophicks: Except the guy is demanding $1700 for a computer where the most likely "damage" is a loose cable.

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@Shoelace: UPS does NOT owe him $1700 dollars. He needs to get a repair estimate.

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@dave_coder: How is 'pricing a current computer...' not fair?
The computer works. If you break it, you need to get me another computer that will do the same thing.

Unless you're going the other way, in which I can get a better computer now for $500 than I could a few years ago.

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@verucalise: Sorry, on the "unplug" part of this, you're wrong, unless you'll be working with the power supply; if the case isn't grounded, your anti-static strap doesn't do anything - the potential charge on your person is just also distributed to the case. The reason for unplugging when working with the PSU and power bits is so you don't kill yourself if you touch one of the 'always on' parts. I'm not trying to be an ass, just pointing out that you're risking frying your parts by unplugging your case before working.

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@HiPwr: Exactly. For some reason I am reminded of the episode of Seinfeld where Kramer offers to get Jerry's stereo fixed.