After you have filed a claim, a Lloyd's claim administrator will contact you within 45 days after filing to let you know the results of the investigation. The claim filing procedures at iCollector.com and Amazon.com Auctions are similar. Unfortunately, the average auction insurance claim takes 21 to 45 days to process. You might be required to cover the cost of shipping the item back to the seller with a specified carrier, using the required services (item tracking, insurance, etc.).

When to File
Both Amazon.com Auctions and eBay give you 60 days from the end of the transaction, and iCollector.com wants a claim within 14 days after discovering that you may be eligible to make one.

Insurance claims are intended for buyers to recoup property losses--not for refunds of site commission or listing fees. In addition, you cannot file a claim if you've changed your mind about an item you purchased and want a refund from the seller. That has to be resolved user-to-user with assistance from the site's customer support group, if one exists.

If you haven't been able to resolve the issue with the seller, the following types of circumstances merit filing an insurance claim:

• An item sold as new is actually used.
• An item listed as authentic is counterfeit.
• The item does not match what was specified in the auction description.
• An item listed as being in working order doesn't work.

You are expected to have exhausted all reasonable means of resolving the dispute with the seller before filing a claim.

Lastly, auction insurance does not cover items lost or damaged in transit. Those claims must be made with the carrier. Moreover, none of the sites specify whether they will cover victims of the buy and switch routine, which is typically a seller nemesis. Auction insurance appears to be a service available only to buyers.

It's a Nice Touch, But...
Although it's good to know it's available at no extra cost, online auction insurance won't replace using caution and common sense to safeguard against online auction fraud.

If you'd like to read more about online auction insurance, visit SafeOnline.

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