Yes it is on UPSs shoulders, however the seller agrees to produce an item for me. That has not happened. If the package had been damaged it would be a different story. I would have to file the claim.
If the seller would have required signature, we wouldnt be here right now. You don't send a $1300 (insured for $1000...) and not have a signature. That is asking for trouble, and indeed from what I have read Paypal only protects you if you require signature for items over $250.
I most assuredly don't want to make this a hassle, but it is not my responsiblity to file a claim and I most assuredely can't wait around for the claim to go through before I get my money back.
Well, the one thing that no one seems to have addressed here, is whether you were even "entitled" to insurance.
It is very commonly known that the buyer is responsible for requesting the seller to add insurance if they desire it (particularly on private sales). Further, the buyer is also expected to pay whatever the additional fees are to cover the requested insurance.
This is standard practice on e-bay and other online sales.
Insurance is not an automatic right. The seller is absolved of all responsibility if they can prove they shipped it, shipped it to your address, and did not commit any fraud. If you do not elect to purchase insurance (especially in an e-bay transaction), you elect to take the risk that it might become lost or damaged in transit.
So, unless the price you paid was specifically stated to include insurance, then it should be assumed that you were only paying for shipping. Again, standard practice in e-bay.
If the price was specifically stated to include insurance, then it should have been insured for the full value.
But, if the carrier has a maximum value that they will cover, then naturally that becomes a factor. I've shipped some packages that could not be insured for more than $1000.
And, depending on the specific shipping method, some carriers let you declare a value, but will not explicitly cover the product for that value. It's just a declared value that is used in the claims process, but not explicitly insurance.
So, if you did not request and specifically pay for insurance coverage, then you really would not be entitled to that coverage.
If that is the case, then the fact that she did insure it for $1000 is pure bonus. That would mean that she decided to offer you additional protection on your purchase, and therefore provided you with more than you purchased. If the coverage is $300 less than the price of the machine you purchased, then so be it. That's still more coverage than you were entitled to if you didn't explicitly pay for shipping insurance.
Just some points to consider before you fault her for only insuring it for $1000. If you didn't explicitly pay for and request insurance, then you could be without any insurance coverage at all. So, consider yourself lucky that she threw you a bonus.
Of course, if you did explicitly agree on her including full insurance for the price you paid, then that is different. But, of course, that would still be subject to the maximum allowed by the shipper for the shipping method, and package type.