How does credit card purchase protection work? Here’s what you need to know before you make a claim

Many credit cards come with perks beyond earning cash back or rewards points. Some include purchase protection, which helps cover the cost of repairing or replacing belongings bought with the card.

How much protection you have depends on the specific card: Most cover items for the first 60 or 90 days after purchase but the Chase Freedom Flex℠ card offers protection against damage or theft for 120 days, with a cap of $500 per claim and $50,000 over the lifetime of the card.

There's no annual fee and new cardholders enjoy a 0% introductory APR for the first 15 months on purchases and balance transfers (with a variable APR of 20.49% to 29.24% afterward).  

If you want more coverage, the American Express® Gold Card is a great option: Cardholders can receive up to $10,000 per purchase and $50,000 per account for damage or theft that occurs within 90 days of purchase.  

Understanding how your card's purchase protection works before you need it is important. Here's what you should know before filing a claim.  

• What is and isn't covered by purchase protection
• How to file a purchase protection claim 
• Which credit card companies offer purchase protection
• Bottom line

Obviously, an item must have been bought with a credit card that offers a protection plan to be covered by it. Each plan has a set amount of time a purchase is covered, a set dollar amount that will be paid and a limit on how much the cardholder can claim in a calendar year or over the lifetime of the account. (Check your card's benefits guide to see which applies.).

Some cards only cover theft or damage and not loss. Items purchased abroad can often qualify for coverage.

These items are typically not covered by credit card purchase protection plans:  

• Vintage or antique goods
• Plants and animals 
• Perishables 
• Cars
• Boats
• Software
• Gift cards
• Event tickets

Purchase protection is best used if you don't have homeowners or renters insurance or the item isn't covered by your policy. In some cases, it's not the right move to file a homeowners or renters insurance claim — generally, it's best to avoid claims that are equal to or less than the deductible.  

Since the item is only covered for a limited time, you'll want to work quickly. You'll need the following documents to file a claim:

• The receipt from the retailer you bought the item from
• A credit card statement showing the purchase
• A repair estimate if the item was damaged
• A police report if the item was stolen

If you're required to file an insurance claim, you'll likely need to also provide a copy of the claim settlement and your insurance declarations page, as well as any other relevant paperwork.

While the timeframe and dollar amount covered varies depending on the individual card, American Express, Visa and Mastercard all offer purchase protection plans. Discover does not currently offer purchase protection.

• You can manage Visa purchase protection claims on the card benefit services site or by calling 888-221-3289. 
• American Express claims can be made on the Amex website or by calling 800-228-6855.
• Mastercard claims can be made through My Card Benefits or by calling 636-722–8883. 

Credit card purchase protection can come in handy if an item is damaged or stolen soon after you buy it. But there are limits on what is covered, when you can file a claim and how much you can be reimbursed, so it's important to study your card's policy before you need it.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.

For rates and fees of the American Express® Gold Card, click here.