Pete wrote...
"If you take a look at Michael's auctions you will see that he lists a Shipping and handling price in his auction descriptions, and makes no mention of insurance."

Response: If that is the case, I stand corrected on that particular auction. Mike does not provide a link to the auction in his original post and I did not try to play detective and look it up. He says insurance was offered and the buyer did not take it. I was working on the assumption that the offer for insurance was in the auction's description. If Mike did not specifically indicate insurance was optional within the auction's description, then I would agree he, the seller, is responsible for the package. To make this offer later after the auction closes I believe is wrong.

Pete Wrote...
"Just out of curiousity, if a buyer gets a cashiers check to pay you (lets say that cost him $1) and then mails it to you and it gets lost in the mail who eats the $1 plus what ever cost of tracking and canceling the cashiers check? Would it make a difference if they offered to let you buy insurance first?"

Response: Of course it's the buyer's responsibility to get payment to the seller. This question doesn't even make sense to me. I guess you didn't understand my post. Let me try to say it another way...

1. The act of bidding on and winning an auction is a binding agreement between the buyer and seller.
2. By default, I believe it is the seller's responsibility to make sure the package arrives to the buyer. Unless... there is a provision in the terms of the auction that says the buyer has the election to save a few dollars on the final price and not pay for insurance.
3. Example: If the buyer is given the following shipping choices within the auction terms:

a. S&H $2.00 without insurance.

b. S&H $3.10 with insurance for packages up to $50.00.

If the buyer selects option "a", then it is cut-and-dry to me... the buyer takes on the responsibility.

Mike wrote...
"I have often wondered why so many sellers believe it is so fair to eliminate all risk to them (at the buyers expense)"

Response: In the real world, all costs are eventually passed on to the buyers of any products. One is living in a dream world if the thought is otherwise.

I believe that William Schelhas made a very good post elsewhere in this thread and I would also agree with what he was saying...