Address confirmation is useful because it provides a way for a seller to verify a buyer's identity. However, shipment to a confirmed address is not a requirement for coverage under PayPal's Seller Protection policy. This is because not all PayPal users are able to confirm their addresses.
If a transaction is eligible for coverage under PayPal's Seller Protection policy, we recommend that you go ahead and ship to the address found on PayPal's Transaction Details page (regardless of whether that address is confirmed or not). Also, we recommend against stating in your listing that you won't ship to an unconfirmed address. Since a confirmed address isn't a requirement for coverage under the Seller Protection policy, this is an unnecessary restriction and might discourage a potential buyer.