I would never advise anyone to report a theft of a small item almost certainly worth less than $3K to their homeowner's insurer. People are losing their homeowner's insurance if they have too many small claims, at least in the Gulf Coast and the tornado-prone states. If you lose your homeowner's insurance, you may not be able to buy homeowner's insurance from another insurer and will have to fall back on the very expensive state-sponsored insurance. It is happening more and more. Small thefts should just be "eaten" because you need that insurance when an oak tree falls on your house! There was an article in Kiplinger's telling about this. I believe it was the June 2003 issue but someone who still has the old issues might look it up. A person interviewed had lost his homeowner's insurance because he made a "lost baggage" claim. Now his house can't get regular coverage and so is un-sellable for its former market value.

Most digital cameras, even brand new, are worth less or only a little more than your $500 deductible anyway. I just don't see any good coming of reporting such a theft to your insurer.