I bought a “Grand Seiko” on eBay. It looked perfect. Six months later, I sent it for service. Grand Seiko returned it with a note: “Counterfeit. Confiscated/Destroyed.” I filed a claim with my insurance for the $6,000 loss. Denied. “We do not insure counterfeit property.”
Key Takeaways
- Insurable Interest: You cannot insure a fake item for the value of a real item. The “property” you insured (a real Grand Seiko) never existed.
- Fraud Exclusion: Insurance covers physical loss (theft/fire), not financial loss due to being scammed.
- Confiscation: If a brand service center or Customs confiscates the fake, insurance excludes “Governmental Action” or “Seizure.”
- Purchase Protection is Your Only Hope: Your recourse is with the payment method (Credit Card, PayPal, eBay), not your property insurer.
The “Why” (The Trap)
The trap is “Definition of Covered Property.”
The policy insures a “Grand Seiko Snowflake.”
The item you possessed was a “piece of metal worth $200.”
When you file a claim, you are asking to be paid $6,000 for a $200 item. That is enrichment.
Even if you acted in good faith, the policy does not cover your bad purchase decision.
The Investigation (My Analysis of Recovery)
Since insurance is out, what works?
eBay Authenticity Guarantee
- The Safety Net: If it went through eBay authentication, and turned out fake later, eBay has a money-back guarantee.
- The Limit: Usually 30 days, but for counterfeits, they often extend it.
Amex / Chase Purchase Protection
- The Policy: Some premium cards have “Return Protection” or “Fraud Protection.”
- The Reality: They might cover it, but usually capped at $500 or $1,000 per claim.
Property Insurance
- The Result: 100% Denial. I have never seen a property insurer pay for a fake watch that was confiscated.
[IMAGE: Photo of a letter from a Service Center stating “Item is Counterfeit” next to the watch parts in a bag]
Comparison Table
| Scenario | Insurance Payout | Credit Card Payout | Platform (eBay) Payout |
| Watch Stolen (Real) | Covered | N/A | N/A |
| Watch Fake (Scam) | Denied | Maybe (Fraud) | Yes (Guarantee) |
| Watch Confiscated | Denied | Denied | Maybe |
Step-by-Step Action Plan
- Do Not File an Insurance Claim: It will be denied, and you will have a “claim” on your record for nothing.
- Contact the Seller: Demand a refund.
- File a Police Report: For fraud. You need this for the credit card dispute.
- Chargeback: Call your credit card issuer immediately. Provide the letter from Grand Seiko proving it is fake. “Product not as described.”
FAQ
What if I insured it with an appraisal?
If the appraiser was fooled too, you might have a case against the appraiser’s Errors & Omissions insurance, but your property insurance will still deny it.
What if I unknowingly sell a fake and get sued?
Your personal liability insurance might defend you, but likely not for a business transaction.
Is a “Frankenwatch” covered?
If it has real parts but mixed together? Yes, but only for the value of the parts, not the original reference value.