Upload & Sell: On
It's true about what mitesh said. Many sellers either here or on eBay aren't aware of this. Sellers just want to make the overall cost appear cheaper.
I almost never ship anything without insurance. When buyers use Paypal, I have a special care for the package--making sure that it's fully covered and that it'll have signature confirmation for anything over $250.
However, recently, there was one time that I ship the package out without insurance. Buyer made some negotiation. Since he's paying by something other than Paypal, we negotiated to the point that I would ship with no insurance at the great reduced shipping cost, but I explained him that I wouldn't take any responsibility if the package was lost or damaged. He agreed and just asked me to pack carefully.
I guess it all depends on how both party make agreement. But, if the payment is by Paypal, I wouldn't take any risk as a shipper.