How to get the most out of Ebay

[Getsickanddie]

I am setting up the insurance and have selected "optional". It now wants a dollar amount. Is this what they pay or how much it covers? If it is how much it covers, what should I do it for? Most items are $10 to $40, so should I do the value?

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

Fee . . . . . . . . . . Insurance Coverage
$1.70 ................ $0.01 to $50
$2.15 ................ $50.01 to $100
$2.60 ................ $100.01 to $200
$4.60 ................ $200.01 to $300
$5.55 ................ $300.01 to $400
$6.50 ................ $400.01 to $500
$7.45 ................ $500.01 to $600
$7.45 plus $0.95 per $100 or fraction thereof over $600 to $5,000.