The Advantages and Disadvantages of a Safe Deposit Box
Using a safe deposit box can be convenient and safer than keeping important documents in your home. These units are housed in vaults with steel-barred concrete walls, motion detectors, and heavy-duty doors. According to David McGuinn, president of Houston-based Safe Deposit Specialists, a financial consulting firm, the contents of a safe deposit container are not subject to state probate laws, but a person suffering from an addiction to drugs or alcohol may not be the best candidate.
Even if you do not keep your valuables in a safe deposit box, there is a chance that something may go missing. A few hundred customers a year report items missing from their boxes, including rare coins, art, and stacks of cash. In most cases, the bank is at fault for missing valuables, but lax regulations allow banks to shirk their responsibility. As a result, it is imperative that you keep your valuables safe.
You should also remember that the contents of a safe deposit box are not insured, unlike bank deposits. While the Federal Deposit Insurance Corporation insures cash deposits up to a certain limit, banks are not required to insure the contents of a safe deposit box. If you cannot pay for the contents of your safe deposit box, the bank could sell it at auction. If you decide to leave your important documents in a safe deposit, don't worry. You won't lose anything if you don't pay up.
Safe deposit boxes can be very secure. You can rent a safe deposit box at a brick-and-mortar bank or credit union. You can choose the size of the box and the amount of space you need for the box. They are usually metal, and can be as small as three x five inches. You can also use a home safe. If you don't need a lot of space, you can buy a larger one and put it in your living room. Then, you can keep it in a closet.
While a safe deposit box is not covered by the Federal Deposit Insurance Corp. or the National Credit Union Administration, it can be insured for an additional fee. Regardless of the size of your box, insurance is an important feature to consider when storing your valuables. Fortunately, there are many ways to protect your valuables. The Federal Deposit Insurance Corp. says that safe deposit boxes are a low-risk item, but they still need to be insured.
The FDIC insures bank accounts and will reimburse a customer up to a limit determined by federal law. While this insurance does not cover the contents of a safe deposit box, it does offer extra protection in the event of a burglary. Insurers recommend that customers place their valuables in a safe deposit box with a good security company to make sure that their possessions are protected. It may be necessary to pay a small annual fee to rent a safe deposit box, and make sure to check the minimum requirements for your policy.
The Advantages and Disadvantages of a Safe Deposit Box
Using a safe deposit box can be convenient and safer than keeping important documents in your home. These units are housed in vaults with steel-barred concrete walls, motion detectors, and heavy-duty doors. According to David McGuinn, president of Houston-based Safe Deposit Specialists, a financial consulting firm, the contents of a safe deposit container are not subject to state probate laws, but a person suffering from an addiction to drugs or alcohol may not be the best candidate.
Even if you do not keep your valuables in a safe deposit box, there is a chance that something may go missing. A few hundred customers a year report items missing from their boxes, including rare coins, art, and stacks of cash. In most cases, the bank is at fault for missing valuables, but lax regulations allow banks to shirk their responsibility. As a result, it is imperative that you keep your valuables safe.
You should also remember that the contents of a safe deposit box are not insured, unlike bank deposits. While the Federal Deposit Insurance Corporation insures cash deposits up to a certain limit, banks are not required to insure the contents of a safe deposit box. If you cannot pay for the contents of your safe deposit box, the bank could sell it at auction. If you decide to leave your important documents in a safe deposit, don't worry. You won't lose anything if you don't pay up.
Safe deposit boxes can be very secure. You can rent a safe deposit box at a brick-and-mortar bank or credit union. You can choose the size of the box and the amount of space you need for the box. They are usually metal, and can be as small as three x five inches. You can also use a home safe. If you don't need a lot of space, you can buy a larger one and put it in your living room. Then, you can keep it in a closet.
While a safe deposit box is not covered by the Federal Deposit Insurance Corp. or the National Credit Union Administration, it can be insured for an additional fee. Regardless of the size of your box, insurance is an important feature to consider when storing your valuables. Fortunately, there are many ways to protect your valuables. The Federal Deposit Insurance Corp. says that safe deposit boxes are a low-risk item, but they still need to be insured.
The FDIC insures bank accounts and will reimburse a customer up to a limit determined by federal law. While this insurance does not cover the contents of a safe deposit box, it does offer extra protection in the event of a burglary. Insurers recommend that customers place their valuables in a safe deposit box with a good security company to make sure that their possessions are protected. It may be necessary to pay a small annual fee to rent a safe deposit box, and make sure to check the minimum requirements for your policy.
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