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Sorry to hear about the loss.
We send stuff for customers to APO addresses several times a week and it's definitely insurable. The only negative thing about putting insurance on it is that customers want it to their loved ones as soon as possible and if they put insurance on it in certain cases it takes the recipient longer to receive it as someone has to sign for it and I guess at times they want it to be the individual it's going to and if he's deployed away from the base that receives mail it could take longer. It's not like they are going to pay duties and taxes on it so on the customs form many times we have the customer put "Gifts or personal items".
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