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Insurance: Lost Items & 3rd Party (drop) Shippers, and how much is actually insured

Hi - Yet more questions about the shipping insurance Auctiva offers:

1) From what I remember of looking over the claim form (unfortunately I'm forgetting how to download it again right at the moment), it seems to pretty much only be concerned with damages - will it also cover if the item just plain doesn't show up at it's destination? If so, how long past the shipping date is it considered "lost"?

2) Will the insurance cover items that are technically shipped by somebody else, such as something shipped directly from a supplier or drop shipper?

3) How does the system determine what the value of the item is? Is it based only on how much the purchase price was?
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