Insurance Savings
Storing rare and valuable property in a safe deposit box significantly reduced insurance premiums.
Owners of valuable personal property, such as rare collections of stamps, coins or jewelry, must consider specifically including these items on a scheduled personal property endorsement to their homeowner's policy.
It is also worth noting that neither banks, the FDIC nor Charter Private insure items stored in a safe deposit box. Individuals are liable for their property.
Nearly ALL homeowner policies place SPECIAL LIMITS of liability on such items and any replacement offerings by insurance companies are likely to cover only a fraction of the full replacement cost.
Insuring valuable personal property on a scheduled endorsement or rider to your homeowner's policy can significantly reduce your insurance premium costs if you protect the property in a vaulted safe deposit box.
Table 1 below depicts premium rates for in-vault storage vs. out-of-vault storage among two competitive insurance companies:
Table 1
| Insurance Provider |
Premium In-Vault |
Premium Out-of-Vault |
| Company A | $0.28 / $100 Value | $1.63 / $100 Value |
| Company B | $0.30 / $100 Value | $1.45 / 100 Value |
By using the insurance calculator on the right, you can see that based on the value of your property, it is likely that the savings in insurance premium is greater that the annual box rental fee.
In addition to protection against theft, there is also greater protection from fire and water damage which are more likely to occur in your home or other out-of-vault site.
NOTE: You have a duty to appraise the $ value of your damages. It is a duty well worth assuming for your benefit and if you incur an expense in compiling that appraisal, you are typically entitled to be reimbursed by the insurance company for that expense.
It is important to note that policies covering items stored in safe deposit box typically require notification when the items are removed from your safe deposit box. Premium amounts will be adjusted according to the length of time estimated that the item is outside the vault. Charter Private will work closely with insurance companies to develop a turn-key out-of-vault notification program for clients who may have that need from time to time.
Expert Opinions
Read what the experts say about safe deposit boxes:
