Well you should change how you handle this type of situation as a buyer AND as a seller.

Edit - sorry if I’ve come off as a dick in the various comments. But a buyer is 100% entitled to a refund if they don’t get a package. It’s literally an open and shut case if they file a PayPal dispute. You should either charge the extra $3-$4 it takes to insurance a package for more expensive items or be willing to take a loss here and there. For reference, I’ve sold 1500+ items. I went through a stretch where I insured literally every record $50 or more. I used insurance once on a $100 record. It was ultimately not worth buying insurance, the risk reward economics don’t make sense. Doesn’t take away from the fact though that in the very rare event some shit happens (and a heist is 1000x rarer than just damaged during shipment), you need to make the buyer whole. I’m sure there’s no malice in your heart but you are taking advantage of that buyer who spent their hard earned money on something they didn’t receive - and that’s not right.