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Safe deposit box insurance—Is it worth it?
Tomthemailcarrier
Posts: 638 ✭✭✭✭✭
I looked into insuring my coins that are in my bank SDB. Hugh Wood insurance would cost me about $300 per hundred thousand in coin valuation. I’m not worried so much about theft but more concerned about banks negligence and human error when there is a bank merger or branch closing. I’ve had to move my coins from a bank branch that was closed. The bank notified me by US Mail that I’d have to remove the contents of the box by a certain date and arrange to have a box at a different branch.
What if the notification went awry? I’m interested in your thoughts.
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Their notification was likely the least required effort to contact you. They probably had to post an official tidbit in a local paper as well. But nothing more personal. I wonder if insurance covers situations where you lose track of a sdb location? Peace Roy
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You may want to get a quote from these guys too: https://safedepositboxinsurance.com/
Unfortunately, this type of insurance doesn't protect against mysterious disappearance or internal bank issues. Primarily this type of insurance protects against bank vault robbery and natural disasters.
My friend bank branch once was closed and he did not receive the letter
Or he did not pay attention to it ( I think this is more likely). The box contents were moved to out of state. When my friend found out the branch gone he panicked. He contacted the bank. The bank sent the contents back to him after a while. That was over a million worth of coins or more. I don’t know how many sleep he lost over this. After that he bought a big safe at home.
Buying a big high security safe at home might be better. It needs at least 3000 pounds weight.
The HWI quote of 0.3% value per year seems like a mighty good buy for peace of mind, in my opinion, if you choose to keep pieces in an SDB.
In honor of the memory of Cpl. Michael E. Thompson
Not a fan of home safes. Do a little research on the du Pont Coin Robbery.
Highly recommend getting the SDB for the piece of mind.
the quoted cost sound very favorable (probably on-par with the actual risk involved, which should be little).
i think that the important part will boil down to the terms. best to read them to see what is covered, how, etc.
most here know how complicated various types of insurance can get with addendums, requirements, exceptions etc. the insurance provider may actually have requirements of the banks, vaults, storage procedures etc. best to find a provider with some numismatic experience.
also, just because you have a great bank, vault, insurance etc., don't forget to check on your babies, idk, at least once every 3 months, probably 6 max for a myriad of reasons. at the end of the day they are your items.
when i had mine, i had a printed inventory in the box with the digital copy backed up at home. any changes made, to the actual list at the bank, additions/retrievals, then bought home, updated, printed out, then back to the bank usually the same day or next and just needed to lift the lid, slide it in while in the vault and voila.
Seems like overkill to me
Dave
It's easy enough to find news stories of people losing the stuff they had in their bank box, too. There is a risk to whatever option you choose.
Agreed. And I think you will have fewer headaches with a SDB over a home safe.
Buying insurance prove of value going to be tough if lost happens. I think this is going to be you said, he said kind of thing. Big safe with security camera might not be a bad idea, plus big safe might be even a good investment because those thick steel wall and door price will increase over time.
Yes, it would be a safe investment... 😁
I do not use an SDB.... I have a safe, a really good safe, layered security system to protect the safe and the rest of the house. Saves on fees and insurance. More money for coins and good wine
Cheers, RickO
Yes - 100% worthwhile in my opinion. We also deal with Hugh Wood (in fact, for 25 years straight) - good firm and people.
Owner/Founder GreatCollections
GreatCollections Coin Auctions - Certified Coin Auctions Every Week - Rare Coins & Coin Values
This is a low rate in my experience for HWI, and as such is a good deal. One also needs to be an ANA member for their policy so that adds $30/y at the low end.
Yes - Consult Hugh Woods.
Flooding, fire, burglary, etc can be a threat to SDB. I also believe in a home safe. However if your out of town thieves have all day to work with a safe.
One needs to develop strategy cognizant of above. The more compact the material the easier to execute. Of course currency / graded notes more easily store / transport.
I have had a Hugh Wood policy for years. Worth every cent for the peace of mind.
I have not been a fan of SDB since Katrina. Some banks were destroyed and SDB contents washed away or exposed to the public for weeks. Other bank were flooded and the SDB filled with water and stayed that way for months. I want my collection where I can grab it in a heartbeat and go.