Many people put their valuables in a safety deposit box for protection. The question is, what happens if that box is compromised. While the thought may send shudders down your spine, there’s an insurance option for everything – including safety deposit boxes.
What is Safe Deposit Box insurance?
Safe Deposit Box insurance insures losses due to burglary, fire, explosions, floods, tsunamis, tidal waves, tornados, landslides, faulty plumbing or sprinkler systems, and additional natural and man-made disasters except for earthquakes. It covers anything you can place in a safe deposit box that you legally own or possess.
You need coverage for every safety deposit box you own. One of the great things about this type of insurance is that you can get it directly from the SDBIC if your bank or credit union does not offer it.
Additionally, limits of up to $1,000,000 are available. In the event something happens, your items that were in the box are insured and may be replaced, or you can get compensated for those items that are irreplaceable.
Aren’t the items in my safety deposit box covered by my homeowner’s policy?
Some items placed in safety deposit boxes are partially covered by a homeowner’s insurance policy, but in most cases, it is not enough. In many instances, these items are not covered at all. Even if a rider is added to your policy, those higher limits do not consider the other homeowner coverage limitations attached to the policy. Added protection for your valuables and documents is always a good idea to limit the exposure to loss.
How much is Safe Deposit Box insurance?
The amount varies based on the coverage selected. It is a relatively inexpensive option with no deductible if you incur losses.