How to Spot Red Flags in High-Value Claims
Five Indicators Every Adjuster Should Watch For
High-value claims involving fine instruments, watches, collectibles, or other luxury items often arrive with a veneer of credibility. There’s documentation, professional-sounding language, and often a sense of urgency or emotion. But beneath the surface, some of these claims include serious red flags—signals that something may not be as it seems.
At Ashthorne Advisory, we are frequently called in after something “feels off” to an adjuster or underwriter. Over time, we’ve identified several recurring patterns that signal the need for deeper scrutiny. Here are five red flags every professional handling luxury claims should recognize:
1. Inflated Appraisals or Dealer Invoices That Don’t Add Up
An appraisal is only as reliable as its source. When we review claims involving high-value items—whether pianos, violins, or watches—one of the first things we examine is the appraisal’s content, source, and underlying assumptions.
A common issue: documents from a party with a financial stake in the claim, such as a salesperson who would benefit from a high replacement payout. In one case, a piano tech who also worked at a retail dealer provided a $140,000 replacement estimate for a piano worth closer to $30,000. The supporting invoice was grossly inflated, and the recommended replacement was a far more valuable instrument than the original ever was.
A credible expert should have no skin in the game.
2. Lack of Documentation for Supposedly Valuable Items
Luxury items typically come with some form of documentation. Certificates of authenticity, serial numbers, purchase invoices, or even archived listings often support legitimate valuations. When a claimant asserts that a violin is a six-figure piece or that a watch is from a limited series—but cannot or will not provide paperwork—that should raise immediate concerns.
Absence of documentation does not automatically signal fraud, but it should prompt a methodical, expert-led evaluation to verify the claim’s credibility.
3. Misalignment Between the Item and Its Stated Value
Experienced specialists can often identify inconsistency simply from photos. For example, a grand piano with peeling ivories and water-stained cabinet is unlikely to justify a six-figure replacement price. Likewise, if a damaged violin case is made of standard materials but the claim describes it as carbon fiber, closer review is warranted.
At Ashthorne, we’ve seen cases where the stated loss appeared minor—until we discovered that a damaged bow alone was worth over $25,000. Conversely, we’ve also reviewed claims where student level instruments were passed off as “performance-grade.”
Knowing how to recognize whether the visual and contextual details align with the claimed value is critical.
4. “Experts” Who Are Actually Salespeople
When a claimant’s valuation comes from someone who sells the very item in question, extra care is required. This is especially common in smaller markets or niche categories. We’ve encountered “experts” who offer only high-end comparisons, ignoring more appropriate like-kind replacements. Others issue replacement quotes using premium configurations or inflated retail rates. In the luxury goods world, an MSRP is merely a suggestion and true values can fluctuate greatly above and below this arbitrary suggested sale price.
Insurers benefit from third-party consultants who are not part of the sales cycle. Independent expertise ensures both sides receive a grounded and defensible valuation.
5. Excessive Urgency or Defensiveness from the Claimant
While emotions can run high during any claim process, excessive urgency or pushback about even basic verification steps can be a warning sign. In some cases, we’ve observed claimants become increasingly defensive when asked for photos, proof of ownership, or clarification about prior repairs.
Calm, cooperative responses are typical of legitimate claims. When a claimant resists even standard due diligence, it’s worth pausing to reassess.
Conclusion
Luxury and high-value claims deserve specialized attention. While most claimants are honest, even a small number of exaggerated or fraudulent submissions can result in massive overpayments. Recognizing early warning signs—like inflated valuations, lack of documentation, or biased sources—can protect both the insurer and the claimant from long-term issues.
Ashthorne Advisory supports insurers with early-stage evaluations, second opinions, and in-depth assessments for complex or high-stakes claims. Our role is not just to evaluate the item, but to bring clarity, neutrality, and credibility to the process.
When red flags appear, having the right expertise in your corner can make all the difference.