twitter frequently disconnects https connections to the streaming api, so it's definitely the right thing to catch such events and reconnect (make sure to incrementally back off if your first reconnection attempt doesn't work).
The "connection reset by peer" exception is not a TweepyError but an underlying type. If I recall correctly, it's a socket exception. So if you want to catch that, I'd recommend using a blanket "except Exception" (not the best way) or specifically an exceptions. IOError one.
Hope that helps,
regards,
Pascal
Depending on which urllib you use something like this should work:
http://stackoverflow.com/questions/5000138/need-help-with-python-exception-handling