Are you obligated to give a refund after an item is lost in the mail

[Joshchisox08]

Just wondering. I sent out an item a couple weeks ago. Shipping from CT to Ohio in a regular envelope. I did ship in small 25 card holder with only 1 stamp. But the mailman took it.

The buyer opened a claim with eBay before he ever contacted me. I think that's a minor red flag. It's always possible he received it and is now opening a claim to get his money back.

For the most part conversation has been civil. He said he'd wait till this past weekend. He then said maybe it's being held at the post office which I plan on calling today.

Do you guys think this warrants a full refund? I'd like to say that I don't feel as though I'm obligated to issue one as it isn't my fault there was no insurance purchased. At very minimum a half refund should be issued. Just wondering what your thoughts are.