How Safe is Your Safe Deposit Box?

I've got a safe deposit box. I don't know you, but I'mnew depositors. Check to see with your specific box
guessing that YOU have a safe deposit box too! Atcompany what the general levels are.
least, if you've got any brains in your head you do! InSome things aren't cover-able by insurance. Things like
this day and age, with identity theft such a growthstock certificates, for instance, fall into this category. In
industry, it's more important than ever to keep all yourthat case, I suggest you leave your stock certificates
important documents in a safe deposit box.on file with your brokerage company as they are well
And of course, it's always a good idea to keep otherendowed to handle these sorts of things. Your
valuables besides important documents, I'm talkingbrokerage firm has a legal obligation to safeguard your
about jewelry, rare coins, gold bars, diamonds, etc in acertificates that is probably more compelling than a
safety deposit box. Or is it?banks safe deposit obligations.
Just how safe IS your safe deposit box? Sure, it's in aOne solution (well a SORT of solution) is to keep
bank....but banks get robbed all the time. Sometimesmultiple safe deposit boxes at multiple banks in multiple
robbers go straight to the deposit boxes because theytowns. You don't want to keep multiple boxes at the
know that's where the good stuff is. After all, it's hardsame bank, because if a fire hits, all the boxes will get
to walk out of a bank with huge bags of cash (thosedestroyed equally.
things are incredibly heavy!), but if they can walk outAnd you don't want to keep multiple boxes at banks
with a handful of diamonds that may be worth millionsthat are close to each other, because if a earthquake
of dollars...well, you get the idea.or flood hits, chances are all the banks in your area
And you don't just have to worry about theft...there'scould be hit. I suggest keeping two or three boxes in
always a threat of fire, flood, earthquake, alienseveral towns, each within about an hour driving
invasion...well okay, strike that last one. But naturaldistance.
disasters do occur, and banks are not immune toAn hour is far enough away so that a natural disaster
these things.of some sort would likely miss each bank, yet not too
So what can you do to make sure that your safefar away that you can't get there in an hour or so.
deposit box is...well...safe?Another solution is to open a box in the city where you
The most important thing you can do is to buyusually vacation, or one in which you travel to often for
insurance for the contents of your box. Some banksbusiness.
offer a minimum level of insurance with the box (askKeeping your safe deposit box safe is a tricky matter.
your banker to be sure) but this will not likely cover allHowever you end up solving this little dilemma, as long
the contents of your box, especially if you have highas you know this potential problem exists, you are
worth items.already way ahead of the game. I suggest you use a
Some people use private safety deposit boxcombination of insurance for the high-worth items and
companies instead of banks. Generally speaking, thesediversification for all the others.
companies usually offer a little more in insurance for