It’s a good idea to keep appraisals up to date for items that fluctuate widely in value. You’ll likely need to get the items “scheduled,” which means providing original receipts and/or written appraisals. Alternatively, consider what’s called a personal articles floater, a supplemental policy that provides added coverage for specified valuables. One option is to contact your insurer to see if the limits can be raised. Standard homeowners insurance offers some coverage for personal property kept off-premises, but limits are typically low for valuables such as jewelry and collectibles.
As the New York Times noted in its coverage of that loss: "There are no federal laws governing the boxes no rules require banks to compensate customers if their property is stolen or destroyed." One owner of a safe deposit box had a heart-dropping experience when he opened a bank box he had maintained for years, storing a prized collection of valuable watches. Wells Fargo, for example, explicitly states that box contents aren’t insured and advises box owners to “purchase an appropriate policy from the insurance company of your choice.”Īnd there have been noteworthy disappearances from safe deposit banks, especially after banks change owners, sometimes multiple times. The FDIC doesn’t insure the contents of a safe deposit box, nor does the bank itself unless otherwise stated in your agreement. The wedding band from your first marriage, heirloom jewelry from the grandparents, rare coins and similar valuables are good candidates for a safe deposit box – but only if they’re properly insured. The bank that houses the safe deposit box will be happy to hold your cash and maybe even give you a smidgen of interest on it. To receive FDIC insurance, which covers up to $250,000 per depositor per insured bank, your cash needs to be deposited in a qualifying deposit account such as a checking account, savings account or certificate of deposit. Reynolds, chief of the FDIC’s Community Outreach Section. Read the fine print of your agreement.īear in mind, too, that cash in a safe deposit box isn’t protected by the Federal Deposit Insurance Corporation, says Luke W.
Moves like that complicate your ability to retrieve important documents or items when you need them – the answer is to create a financial plan for natural disaster beforehand.Įxperts recommend storing important items that you need to access more frequently or on short notice in a fireproof home safe that’s bolted to the floor. The coronavirus pandemic, too, reduced operating hours for some bank branches, and limited access or required appointments for in-branch services, such as access to safe deposit boxes. There are items you might come to regret locking away in your bank, which isn’t open nights, holidays or perhaps even weekends.Īccess to your safe deposit box could be even more limited during emergencies, including natural disasters (which could even threaten the bank and box itself, depending on where you live). A safe deposit box can also offer critical protection for important documents.īut a safe deposit box isn’t a wise choice for many things. Some examples of things you can and should keep in a safe deposit box include prized possessions such as baseball cards or jewelry inherited from a relative, for example. But don’t write off the value of keeping certain valuables securely tucked away in your bank’s vault (That is, if your existing bank has a safe deposit box vault many are being eliminated.) To that end, a physical safe deposit box might seem like a relic of the bricks-and-mortar (and high-strength steel) past. Almost anything that matters is stored virtually in the cloud.
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