I met a guy from Facebook Marketplace at a Starbucks. I handed him $4,000 cash. He handed me the Yellow Off-White Air Force 1s. No receipt. No invoice. Just a handshake. Six months later, my apartment flooded. The adjuster asked for “Proof of Purchase.” I had nothing.
Key Takeaways
- Cash is Not a Traceable Record: Adjusters hate cash. It mimics money laundering or fraud.
- Bank Withdrawals are Key: You need to match the withdrawal on your bank statement (e.g., “-$4,000 on Nov 12”) with the date of the transaction.
- Digital Paper Trail: Save the DM conversation where you agreed on the price and meeting place.
- The Affidavit: You may need a notarized statement from the seller (good luck finding him) or a sworn affidavit from yourself.
The “Why” (The Trap): The “Insurable Interest”
You must prove you had an “Insurable Interest” (ownership) at the time of loss.
If you have the shoes in your house but no record of buying them, the adjuster can argue they belong to a friend, or you stole them, or they don’t exist.
The Investigation (What works?)
I asked a forensic accountant what stands up in an audit.
1. The “ATM Strategy”
- Evidence: Bank statement showing $4,000 withdrawal at 2:00 PM. Google Timeline showing you at Starbucks at 2:30 PM. Photo of shoes on your car seat at 2:45 PM.
- Verdict: Strong. It creates a timeline that is hard to fake.
2. The “Seller Chat”
- Evidence: Screenshots of the negotiation. “I’ll bring the $4k cash.”
- Verdict: Medium. Chats can be faked, but helpful context.
3. The “Appraisal” (Post-Purchase)
- Evidence: Getting the shoes insured/appraised after you buy them but before the loss.
- Verdict: Ironclad. Once the insurer accepts the item on your schedule, they stop asking where you bought it.
Step-by-Step Action Plan
You just bought cash kicks.
- Photograph Immediately: Put the shoes on the hood of your car. Take a pic. The metadata proves possession 5 minutes after the cash handoff.
- Save the Messages: PDF the Facebook/Text thread. Do not just leave it in the app (accounts get deleted).
- Withdraw Exact Amounts: If the shoe is $4,000, withdraw $4,000. Don’t withdraw $5,000 and keep $1,000 for groceries. The exact match helps the claim.
- Create a Bill of Sale: Bring a generic “Bill of Sale” PDF. Ask the seller to sign it. “Sold 1 pair shoes to [Name] for $4,000.” If they refuse, screenshot the refusal.
FAQ
Q: Does Zelle/Venmo count as cash?
A: No, it’s better. Zelle/Venmo creates a digital transaction ID. “Sent $4,000 to [User].” That is a receipt. Save the transaction detail.
[IMAGE: A collage showing a Bank Statement withdrawal, a Google Maps timeline pin, and a photo of shoes, connected by lines.]