When you purchase Route shipping insurance, Route sends you an email containing information about their services and links to pages that explain their insurance policy. This includes what they cover and don't cover in that policy. We often get this question because some customers don't actually read the email.
As stated in Route's policy:
Note: When refunding an item, Route covers the subtotal of the order. Shipping costs, taxes, and the Route premium are not included.
When replacing an item, Route covers the subtotal of the order and the Route premium. Shipping costs and taxes are not included. Route also does not pay custom/duty fees.
We did not create the insurance policies, but want to stress that these are the policies that Route has for coverage.