The ATF knocked on my door. They claimed my “solvent traps” were unregistered suppressors. They seized my entire collection of 40 firearms “for evidence.” I wasn’t arrested, but my guns are gone. I filed a theft claim with my insurance. Denied. “Government Action Exclusion.”
Key Takeaways
- The “Government Action” Exclusion is Absolute: Every property insurance policy (Homeowners, Renters, Collectibles) explicitly excludes loss caused by “confiscation, seizure, or destruction by any governmental authority.”
- Forfeiture Laws: Civil Asset Forfeiture allows the government to take property suspected of being involved in a crime, even if you aren’t charged. Insurance does not cover this.
- Legal Defense is Your Only Hope: You can’t claim the value of the guns. You have to hire a lawyer to fight for their return. This is an administrative/criminal defense battle.
- No “Loss of Use”: You get $0 for the time your guns sit in an evidence locker rusting.
The “Why” (The Trap)
The trap is “Sovereign Power.”
Insurance covers accidents and criminals. It does not cover the State. If the State takes your property, that is a legal matter, not an insurable peril.
Even specialized “Gun & Trophy” policies have this exclusion.
The Investigation (I Asked Attorneys)
- The Reality: “If the ATF takes them, you are looking at a federal case. Recovering the property takes 1-2 years. Often, they destroy ‘contraband’ items (the solvent traps) and return the rest damaged.”
- Insurance Role: US Law Shield / FLP might provide a lawyer if you are charged or investigated. They can file a “Motion for Return of Property.” But they won’t cut you a check for the value.
Comparison Table
| Event | Insurance Payout (Value) | Legal Defense Provided? |
| Burglary (Thieves) | Yes | N/A |
| ATF Seizure | No (Govt Action) | Yes (If member of legal program) |
| Red Flag Seizure | No | Yes (If member) |
Step-by-Step Action Plan
- Shut Up: Do not talk to the ATF agents. “I assert my 5th Amendment rights. I want my lawyer.”
- Get a Receipt: They must provide an inventory (Form 668-B) of everything seized. Guard this with your life.
- [IMAGE: Photo of a federal ‘Receipt for Property’ form]
- Call Your Legal Program: This is a pre-indictment investigation. Activate your coverage.
- Accept the Loss (Mentally): Prepare for the fact that you might never get them back, or they will be ruined. No insurance check is coming.
FAQ
What if they damage my house during the raid?
Also excluded. Police damage to a home during execution of a warrant is rarely covered by homeowners insurance.
Can I sue the ATF?
Yes (Bivens action or FTCA claim), but it is incredibly difficult and expensive.