How does USPS insurance work?

I was wondering can't someone send an expensive item like an iPhone 5 and say it was working, ship it with insurance and then say it was received broken and replace the working one with the broken one? How USPS know that person is lieing? Or they wouldn't? Not that I plan on doing any kind of stupid scam but I'm just wondering how that would work?

They may not know, but since fraud is jail-able, that keeps most people in line. For everyone else, it's just common decency.

  • What does Transit mean in USPS? I ordered an iPhone from New York and I live in KY. We paid extra for a 1 day shipping but its not here yet? It says its in transit.
  • What Does it mean when it says depart USPS sort facility? My iphone had to be ordered and I have been tracking it. And it gave me " Depart USPS Sort facility" Dow that mean I Should be getting it today or No?
  • Lost my iphone, claimed insurance but found my iphone. Will both work? My question is i recently lost my iphone 5 (t-mobile) and had already called insurance and am receiving my new iphone5 through insurance. T-mobile had told me that they have lock/blocked my lost phone. But recently my friend had found my phone and is mailing it to me but what i want to know is that will i be able to use both the iphones? Or is the one i lost really locked and unable to use?
  • How long does USPS Standard Shipping take? I bought an iPhone case on Ebay and it offered free USPS Standard Shipping. I was wondering how long it takes since I bought it on Saturday (1/15) but I got an email about the seller shipping it on Wednesday (1/19). The package comes from Tulson, Ok and it's arriving to a city near Ontario, California.