“My jewelry has a strong sentimental value to me, making it irreplaceable.” (The subject of the photo is a model.) – Getty Images/iStockphoto
Is it safe to store valuables in a bank safe deposit box? This sounds like a stupid question, but about a year ago I went to a local bank and read the box rental agreement. I read that the bank discourages people from storing jewelry and coins in the boxes, so I didn’t rent one. I remember the rep explaining that it took two keys to open the box.
Are banks liable for lost items? I assume for privacy there are no cameras in the safe area. I have jewelry at home, but I don’t feel safe keeping it there. I keep hearing about break-ins in my neighborhood. Am I overdoing it? Are there other options for storing valuables? My jewelry has a strong sentimental value to me, making it irreplaceable.
Safes are best used for storing important documents, not items like your grandmother’s diamond ring or pearl necklace. – Illustration by MarketWatch
Safes have their drawbacks.
The Federal Deposit Insurance Corp. advises users do not confuse safes with deposit accounts. The first is storage space provided by the bank “so that the contents, including cash, checks or other valuables, are not covered by FDIC deposit insurance if they are damaged or stolen,” the FDIC says. “Furthermore, financial institutions typically do not insure the contents of safe deposit boxes. If you want protection for the valuables in your safe or home safe, talk to your homeowner’s or renter’s insurance agent about adding coverage under these policies.
Safe deposit boxes are best used for storing important documents, not items like your grandmother’s diamond ring or pearl necklace — and you should put money in a checking or savings account, where up to $250,000 per account is covered by FDIC insurance. “Good safe deposit box candidates include originals of key documents such as birth certificates, title deeds, car titles and US savings bonds that have not been converted to electronic securities,” the FDIC advises. “Other possibilities for the box include family keepsakes, treasured collections, photos or videos of your home’s contents for insurance purposes, and irreplaceable photos.”
Safes are vulnerable to fire, theft or flood damage, so it’s a good idea to store items in plastic bags or other waterproof containers for added protection. “Be careful not to use your bank safe deposit box to store anything you may need to access quickly or when the bank is not open,” the FDIC adds. “This may include passports and originals of your ‘powers of attorney’ authorizing others to carry out transactions or make decisions about medical care on your behalf.”
As the FDIC notes, you won’t be able to access a safe in a hurry. The bank will have one key and you will have another, and the box can only be opened with both keys. You’ll only be able to get to the box when the bank is open, so it’s not the best place for something like a passport that you might need to grab quickly to visit a sick relative, for example. Since many banks are closing some of their physical branches, your box may not be that close. Finally, safes can cost up to $100 per year, depending on the size of the box.
Security, like charity, begins at home. One of the best places to store jewelry that has both sentimental and financial value is in a fireproof safe that is bolted to the floor and hidden or disguised as something else. Security cameras that provide live streaming on your phone are another level of security. And of course, you can include these items in your homeowners insurance. While no amount of money can replace items of sentimental value — such as jewelry that has been in your family for many years and belonged to beloved relatives — it certainly doesn’t hurt.
