If you have valuable items at home, you might consider storing them in a safety deposit box for extra security and peace of mind. This can protect against potential losses from home incidents like burglaries or natural disasters such as tornadoes and floods. Setting up a safety deposit box is simple, but there are some important things to keep in mind.
Opening a Safety Deposit Box:
1. Choose the right bank. If your current bank offers safety deposit boxes, it could be convenient and might offer you a discount.
2. Complete and sign the rental agreement. If you want someone else to have access to the box in case you’re ill or unable to, make sure they’re present when you sign the lease and include their signatures too.
3. Store your keys safely. The keys for your safety deposit box are unique, so keep them in a reliable and secure place. If you lose them, you might need a locksmith to make replacements.
Important Considerations:
1. Set up automatic annual payments. If you don’t pay your yearly fee or if you neglect the box for three years, the bank can declare it abandoned, open it, and sell the contents.
2. Keep an inventory of your items. Take a photo and list everything in your box, storing one copy inside the box and another at home.
3. Give your executor the keys and power of attorney. This ensures they can access the box after your death.
4. Inform your insurance company. Let them know about your safety deposit box; you might get a discount on your home insurance.
5. Don’t store items you might need urgently when the bank is closed. For example, if you need to travel abroad suddenly, you don’t want your passport locked in the box on a weekend.
If you need a safe, accessible place for important documents like social security cards, birth certificates, marriage licenses, and passports, consider a fire-resistant, waterproof safe at home. While it could be stolen during a break-in, it protects your documents from other dangers and provides quick access when needed.
With an annual fee ranging from $25 to $100 depending on the size of the box, your important documents can be securely stored. Setting up a safety deposit box is easy and might even lower your home insurance premium.