Should I keep valuables in a safety deposit box? What are my options?

“My jewelry has a strong sentimental value to me, which makes it irreplaceable.” (The subject of the photo is a model.) – Getty Images/iStockphoto

Is it safe to keep valuables in a bank safety deposit box? This seems like a silly question, but about a year ago I went to a local bank and read the rental agreement for a box. I read that the bank advises against people storing jewelry and coins in the safes, so I didn’t rent one. I remember the rep explaining that two keys were needed to open the box.

Are banks responsible for lost items? I imagine for privacy there are no cameras in the safe deposit box area. I have jewelry at home, but I don’t feel safe keeping it there. I keep hearing about tickets in my neighborhood. Am I rethinking this? Are there other options for protecting valuables? My jewelry has a strong sentimental value to me, which makes it irreplaceable.

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Safe deposit boxes are best used to store important documents rather than items like your grandmother's diamond ring or pearl necklace. — Safe deposit boxes are best used to store important documents rather than items like your grandmother’s diamond ring or pearl necklace. – Illustration from MarketWatch

Safe deposit boxes have their drawbacks.

The Federal Deposit Insurance Corp. advises consumers Do not confuse safe deposit boxes with deposit accounts. The first is a bank-provided storage space, “whereby the contents, including cash, checks or other valuables, are not insured by FDIC deposit insurance if damaged or they steal,” the FDIC says. “Also, financial institutions generally do not insure the contents of safe deposit boxes. If you want protection for valuables in your safe deposit box or home safe, talk to your insurance agent owner or tenant to add coverage to these policies.

Safety deposit boxes are best used for storing important documents rather than items like your grandmother’s diamond ring or pearl necklace, and you should put cash in a checking or savings account where to $250,000 per account are covered by FDIC insurance. “Good candidates for a safe deposit box include originals of key documents such as birth certificates, property deeds, car titles, and US savings bonds that have not been converted to electronic securities,” advises the FDIC . “Other possibilities for the box include family mementos, valuable collections, pictures or videos of the contents of your home for insurance purposes and irreplaceable photos.”

Safety deposit boxes 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 extra protection. “Be careful not to use the bank safe deposit box to store anything that you need to access quickly or when the bank is not open,” the FDIC adds. “This could include passports and originals of your ‘powers of attorney’ authorizing others to conduct business or make health care decisions on your behalf.”

As the FDIC points out, you won’t be able to access a safe deposit box in a hurry. The bank will have one key and you will have another, and the safe can only be opened with both keys. You’ll only be able to get to the till when the bank is open, so it’s not the best place for something like a passport, which you might need to get to quickly to visit a sick relative, for example. As many banks are closing some of their brick and mortar branches, your box may not be as close. Finally, safe deposit boxes can cost up to $100 per year, depending on the size of the box.

Safety, 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 affixed to the floor and hidden or disguised as something else. Security cameras that provide a live feed to your phone are another layer of security. And, of course, you can include these items in your homeowners insurance. While no amount of money can replace items with sentimental value, such as jewelry that has been in your family for many years and belonged to beloved relatives, it certainly doesn’t hurt.

More columns by Quentin Fottrell:

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