Home Safe Vs. Bank Deposit Box
Valuable documents, jewelry, collectibles and cash are items often stored in either a home safe or a safe deposit box at a bank. Both storage options have advantages and disadvantages, depending on what you want to store. Neither option is 100 percent safe against events, such as natural disasters.
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Safety
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Theft, fire and floods represent the main threats to valuable items stored in any type of safe, either at home or at a bank. Home safes withstand varying temperatures and lengths of time in a fire. Neither a home safe nor a bank safety deposit box can remain waterproof long-term. A bank box might be built to stay waterproof for a short amount of time. If theft is the main concern, a bank safety deposit box might be a safer option. Your safe deposit box is not likely to be the target of a bank robbery. If a burglar invades your home, a safe will be high on his target list.
ItemType
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The items you store play a role in choosing the best storage option. Items such as passports, insurance policies or emergency cash that you want to access immediately are candidates for a home safe. You don't need to travel to the bank or wait until business hours to access your items. Documents that aren't urgent or jewelry you rarely wear might be better in a bank safe deposit box.
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Cost
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A bank safe deposit box costs a set amount each year. The cost varies by institution. You might also have the option of different sizes in a bank safe deposit box. A larger box generally requires a higher yearly fee. Expect to pay around $30 a year for an average-sized safe deposit box. Visit your bank of choice for more accurate pricing estimates. Home safes cost more initially, but you eliminate the yearly fee. The cost of a home safe depends on the size, security and temperature it can withstand. In the long run, a home safe will save you money since you only pay for it once.
Insurance
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Insurance coverage on items in either a home safe or a bank safe deposit box reimburses you if damage does occur. The contents of your home safe are typically covered by your homeowner's insurance. Ask your insurance agent about adding additional insurance coverage for high-value items, such as jewelry or collectibles, to ensure they are fully covered. Items stored in a bank deposit box do not fall under FDIC protection. Ask your insurance agent if your homeowner's policy covers items stored at a bank.
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References
- Photo Credit Safe box image by Raulmahón from Fotolia.com
