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Posted By: Paul

I've never heard this before. My only experience with postal insurance (aside from purchasing it) occurred several years ago. I ordered a large cardboard display piece. I suspect this would qualify as "paper" in your postal clerk's eyes. Anyhow, it arrived folded in half. I showed the postal insurance clerk the item and no objection was raised that it was paper.

There's also an interesting second half to this story. The clerk asked me whether the folded-in-half item had any salvage value. Before I answered, she very kindly told me that if it had any remaining value, the post office would keep it and auction it off. If it had no value, I could keep it, and receive a full refund. So, if you are ever in that situation yourself, you may want to think long and hard before telling the post office that the value of your item was "cut in half" rather than "made worthless."