Posted on June 30, 2016 by Mary Hood | 0 Comments
For those rarely-worn heirloom jewels, a safe-deposit box at the bank is likely your safest, most practical storage option. This article discusses important things to consider before finalizing your jewelry storage plan.
Safe-Deposit Box Basics
A safe-deposit box is a mini safe-like box secured inside a bank. Most banks and credit unions offer safe-deposit boxes for rent. Because you will only have access to the box during the bank’s business hours, safe-deposit boxes are best for items that you won’t need in a moments’ notice or in an emergency. When setting up a safe-deposit box, consider who you’d like to be able to access the box in case you are unable to. Trusted individuals may include heirs, a spouse, or a designated power of attorney.
Unlike the money you store in the bank, the valuables in your safe-deposit box are not insured by the government or the banking institution. Therefore, it may be wise to purchase separate insurance from a company that specializes in policies for safe-deposit box contents or consult with your home insurance agent to add a rider or personal article floater for specific valuable items stored in the safe-deposit box to your home insurance policy.
Finally, make sure you inventory your safe-deposit box and keep a current list of its contents.
Will My Jewelry Be Safe in a Safe-Deposit Box?
There is no guarantee that your valuables will be perfectly safe in a safe-deposit box—which is why insuring those valuables is a smart plan. Although disasters are rare, they can happen. After the terrorist attacks on September 11, 2001, roughly 1,300 safe-deposit boxes were collateral damage.
That being said, safe-deposit boxes are typically your safest bet since they are protected from home disasters (flooding, fires, and burglaries), which are more likely to occur than bank disasters.
What about a Home Safe?
Although a home safe is certainly more secure than an unlocked jewelry box—and less expensive than a bank safe-deposit box, most home safes have significant vulnerabilities. Many home safes are less than 100 pounds, so it’s not impossible for someone to walk away with one. They also tend to be easier to crack than bank safe-deposit boxes. The average non-fireproof home safe will only hold up for about an hour in a fire, so if you do rely on a home safe for some of your valuables, it’s wise to invest in a fireproof safe.
The Cost of Using a Safe-Deposit Box
The cost of a box varies depending on its size. Some banks may also offer existing customers discounts on safe-deposit boxes. The following estimates are sourced from Financial Web:
Key deposits are usually $10 to $25 per month, and a replacement key is usually $20.
Photos: Stuart Connor via Flickr, Pixabay, Serendipity Diamonds via Flickr