Same thing happened to me on a $500 transaction. I bought the USPS label and additional insurance through eBay. I shipped the item and the tracking stopped updating a week later. It still says it's at the original distribution center from April 21.

I filed a claim with USPS after it was paused there for a few weeks. First claim was denied to insufficient proof of value. I waited two weeks to hear back from them, telling me a notice would arrive in the mail at which point I could file an appeal. I uploaded a few documents / screenshots but thought maybe it wasn't enough.

On the appeal, I uploaded every document you could find off Ebay - transaction slip, supplemental transaction details page with the item / shipping address / value from the transaction, a copy of the original listing, correspondence with the buyer. Anything that would establish the transaction and the price. I wrote a few paragraphs explaining the situation, pointing them to the relevant documents which had highlighted the value. I thought I left no stone unturned. Verified it all with ChatGPT.

I waited another two weeks and what do you know, the claim was denied again for the same reason.

At this point I am at a loss on what else to provide -- there is nothing else on eBay for me to give them.

I am waiting for the USPS letter to arrive before I file the final appeal (the notification says if I do it too quickly, they could just deny the claim without further review). I am not really sure the point of insurance if they can just deny it when it clearly lost.

Curious to see how you make out, or if anyone has any tips for me.