Keeping Your Valuables Safe
Summer is here, and many are planning vacations. Knowing you’re going to be away from home for an extended period of time, you might be considering renting a safe deposit box or placing some of your more valuable items in a box you already rent.
Unfortunately, keeping valuables in a safe deposit box presents a false sense of security for many, as few are aware that most often the contents are not insured by the bank. Even though the boxes are in the vault of your federally insured bank, the FDIC insures only they money in your bank accounts. The items in a safe deposit box are not covered.
Typically, belongings that are in a safe deposit box are insured for a limit of $1,000 on your homeowner’s policy. To have your valuables insured properly, it is necessary to have an additional policy written specifically for the items being placed in a safe deposit box. There are interchangeable terms for this insurance: Rider, Floater, and Scheduled Personal Property Coverage. Your homeowners insurance agent can write this policy for you.
Why do you need insurance for these items? The word “safe” gives you a sense of your belongings being protected. However, just as with your home or any other building, disasters such as thefts, fires, floods, etc, can affect bank vaults, too.
If you choose to keep your valuables at home instead, it is recommended that you:
- Purchase a safe if you don’t already own one.
- Keep your safe hidden so it’s not easily located.
- Anchor the safe to the floor, wall, or a large piece of furniture. This will help prevent thieves from taking your entire safe (it is easy to carry out small safes). If you affix the safe anywhere, purchase an extremely heavy safe this is not easy to remove.
You can now enjoy your vacation, knowing you’ve taken precautions to protect your valuables.