If you have valuable items at home, you might feel more secure by placing them in a safety deposit box. This can protect them from theft or natural disasters like tornadoes and floods. Setting up a safety deposit box is easy, but there are important things to know.
Opening a Safety Deposit Box:
1. Choose the right bank. If your current bank offers safety deposit boxes, you might get a discount if you use their services.
2. Sign the rental agreement. If you want someone else to access the box, such as during illness or incapacity, make sure they are present when you sign and they also sign the agreement.
3. Keep your keys safe. Your safety deposit box keys are unique, so store them in a reliable place. If you lose them, you might need a locksmith to make new ones.
Important Considerations:
1. Set up automatic yearly payments. If you miss paying the annual fee or don’t use the box for three years, the bank can label it abandoned, open it, and auction off the contents.
2. Keep a record of your items. List and photograph everything in your box. Store one copy in the box and another at home.
3. Give your executor access. Ensure your executor has the keys and power of attorney to access the box after your death.
4. Inform your insurance company. Letting them know about your safety deposit box could reduce your home insurance premiums.
5. Don’t store urgently needed items. Avoid placing items you might need when the bank is closed, like passports for unexpected travel.
For crucial documents like social security cards, birth certificates, marriage licenses, and passports, consider a fire-resistant, waterproof safe for home use. While it can be stolen during a break-in, it protects your documents from other risks and allows quick access.
With an annual fee between $25 and $100 depending on the box size, your important documents can be safely stored. Setting up a safety deposit box is simple and might even reduce your home insurance costs.
Have you ever used a safety deposit box? What do you keep in it?