I believe it's ultimately the buyer's responsibility to purchase insurance in a private transaction. Most public transactions (department stores, etc.) have enough customer service that they'll replace an item if it's lost/damaged in the mail. However, most private transactions (eBay, etc.) don't have sufficient assets to take a hit anytime/everytime an item is lost damaged in the mail.

I used to think it was the seller's responsibility, but those lawyers amongst us can help out here... I believe once the item transfers from the sellers hand to another agent (post office, fedex, etc.), it now becomes the property of the buyer... am I far off here?