Below is some information I got from the USPS site, and it made me really think about what is actually covered, when you purchase insurance. Especially when a seller uses the online options for mailing their packages.

Is a $2,000.00 watch really only insured for $500.00 with these restrictions?

I think so, but others may have more information than me, so post here if you know about this.


EVEN MENTIONS EBAY PURCHASES!
Also, from the site, click the Domestic Mail Manual for more.

http://www.usps.com/insurance/welcome.htm

Basic Information
4.2.1 Description
Insured mail provides the following features:
a. Insured mail purchased at a retail post office provides up to $5,000.00 indemnity coverage for a lost, rifled, or damaged article, subject to the standards for the service and payment of the applicable fee.
b. Insured mail purchased online provides up to $500 indemnity coverage for lost, rifled, or damaged articles, subject to the standards for the service and payment of the applicable fee.

Hi Sheila

When you use the online service the max is $500 if you need more I use the online for the mail section (so I can use my address book and the postage is also slightly cheaper) then add separately at the PO the addition insurance as required.
Items over about $700 I use registered post for USA and certain countries the insurance is cheaper especially when you get above a few thousand and I think the max is $50,000. However,,,,, its much slower even if you pay for priority mail in addition to the registered post typically 4-10 days USA but it will get there! My friend has been using registered for 20 years and only had one box in USA rifiled several crushed etc of course .