Does postal insurance cover damaged items only? I paid for insurance on a couple chips I mailed out and the buyer says the chips have not been recieved. I have a Postal Service Insured Mail reciept showing date sent ect. Am I covered if the postal service looses his package? I should also mention that he DECLINED the insurance but it was paid via Paypal with an un-comfirmed address. I felt more comfortable paying the $2 insurance since Paypal says never to ship to any address that isn't comfirmed.