[charbs1111]

You word it something like this;

Disclaimer;

I am not responsible for any loss or damage while item is in transit during shipping by {US Postal Service, FEDEX, or UPS}, unless you purchase insurance and I strongly request that you do purchase insurance.

Make sure you put it in BOLD type so that they can't say that the disclaimer was unnoticeable.

Once the buyer wins the auction, it then becomes a binding contract, and if they open a dispute, you can refuse refund on the notice of disclaimer statement.

Every company that does business on the internet or through mail order, has a disclaimer notice concerning lost or damaged packages incurred during shipping, even eBay has a disclaimer notice

You might find this helpful

http://www.wisegeek.com/what-is-an-ebay-disclaimer.htm

FYI - EBAY (as in paypal) does NOT honor those disclaimers. They still side with the buyer. So unless youre willing to then take paypal to court (and in many cases lose), your disclaimer means nothing. The description of the product has to match what the customer receives, that is the only way the seller will win. Ebay themselves say they are not responsible for lost/damaged products, doesnt say the seller isnt.