I did read it closely and DCJ purchased insurance for the knives he shipped that made it OK to snowreaper. He wasn't filing a claim on the insurance that he himself purchased.
In post #13 DCJ stated that he was filing a claim for the $600 insurance purchased by snowreaper for the item DCJ didn't receive. DCJ explained to me via email that either party could file a claim with USPS which was new to me. I was always under the impression that only the shipper could file a claim for an item not received by the intended recipient but apparently not since he was able to recover a good chunk of his loss with him as the recipient filing the claim. That is good to know.