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Safe Deposit Box 

Safe deposit boxes are a convenient place to store important items that would be difficult or impossible to replace. A safe deposit box also offers privacy (only you know what is inside) and security. Although many people like to keep valuables close by in a closet, safe or file cabinet at home or in the office, these places probably are not as resistant to fire, water or theft. Also, some insurance companies charge lower insurance premiums on valuables kept in a credit union's safe deposit box instead of at home. 

Until recently, insurance was not available to protect your safe deposit box contents against unforeseen catastrophes that a vault or box could protect against. PrimeTrust does not insure nor does the NCUA insure the contents of your box.

That is why we are pleased to now offer you the opportunity to have your safe deposit box contents insured against loss or damage, without disclosure of what is stored in the box or paying for an expensive appraisal. All property stored in the box is covered against most natural and man-made disasters including burglaries and robberies. Additional property can be added at any time and be covered up to the limits you select. 

There are no deductibles and the coverage is very affordable, starting at just $25 per year. Each policy covers the costs of replacing important papers like deeds, titles, wills, trusts, passports or even precious photos if they are damaged or stolen.

The frequency and intensity of natural disasters are on the rise, and as a result, so are the number of instances where safe deposit box contents are being damaged or destroyed. Our safe deposit box still represents the most secure option to protect your valuable property and important papers. It is universally recommended by federal, state and local law enforcement officials as the preferred choice over a home safe and by safety experts as part of a disaster preparation plan. 

It is important to insure your valuables against catastrophes. We recommend that all safe deposit box holders maintain some coverage on their box contents. You can then rest assured knowing your valuable property and important documents are in a secure vault environment, where they are insured against potential loss.

 

Safe Deposit Box Insurance FAQ

 

Why have I never heard of Safe Deposit Box Insurance in the past?

Safe Deposit Box Insurance is a new, patented insurance product designed to provide box holders the maximum amount of insurance protection for the lowest possible cost while maintaining absolute confidentiality and privacy.  While Credit Unions strive to provide a safe and secure environment in which to store your valuable property, they simply cannot protect against all risks. Many Credit Unions are making Safe Deposit Box Insurance available to their members because they recognize there is a gap in the insurance market that leaves their box renter's valuable property exposed to loss.

Does the Credit Union or NCUA insure the contents of my safe deposit box?

No they do not. In your safe deposit box lease agreement you will find the following exclusionary language:

Section 6- “Lessee expressly agrees that Financial Organization shall not be liable for any ordinary negligence on its part in performance of this agreement and that Financial Organization shall not be responsible for the loss of, or damage to said contents, or any part thereof, caused by burglary, theft, embezzlement, fire, or any other cause whatsoever, the risk of such loss or damage being expressly assumed by the lessee.”

Section 8- “Financial Organization does not procure insurance of any kind covering the contents of said box.”

Also, this is what the NCUA provides no coverage for the contents of safe deposit boxes.

Are the contents of my safe deposit box covered by my homeowner's policy?

Partially or not at all.  There are significant limits on the amounts of coverage limits that are available for property typically stored in a safe deposit box (usually about $1,500.00) and numerous types of properties like gold and other precious metals, cash and coins are not covered at all under a homeowner's policy.  You are also not insured against floods or water damage.  If you use a rider to insure your property, while you may be able to obtain higher limits, all of the other homeowner policy coverage limitations apply and you must itemize the property being stored in the box and provide third party appraisals for coverage to be effective.  The rate for the coverage together with the cost of the appraisal of stored items is typically significantly higher than the cost of purchasing Safe Deposit Box Insurance.

I thought the property in my safe deposit box was safe and secure.  Why do I need coverage?

A safe deposit box in your credit unions vault is the best storage option to protect your valuables.  Credit Union vaults are designed to protect your valuables and are the vehicle recommended by law enforcement agencies to store your property.  Unfortunately, the Credit Union and the NCUA does not insure the contents in the event there is a burglary, robbery, flood, fire, hurricane or other man made or natural disaster. 

What property is covered by Safe Deposit Box Insurance?  What if I primarily keep important papers in my safe deposit box?

Anything you place in a safe deposit box that is legal for you to own or possess is covered. Whether it is gold, silver, other precious metals, diamonds, cash, currency, gold certificates, bank notes, coins, bonds, securities, jewelry, rare books, stamps, historical documents, lithographs, drawings, sports memorabilia, fine art, antiques, firearms or any type of collectible, it is covered subject to the limits purchased. 

Each policy provides $3,000.00 of coverage within the limits you select for your important papers such as titles, wills, deeds, immigration papers, passports, discharge orders or other important documents or personal mementos.  This coverage provides discretionary funds to assist you in obtaining or finding replacements for these items. 

Can I add or remove property from my safe deposit box without notifying SDBIC?

Yes.  One of the unique features of Safe Deposit Box Insurance is that the insurance covers all contents in the safe deposit box that is legal to own.  So anything that is in the safe deposit box at the time of a loss (even if it was placed there during the term of the policy) is automatically covered up to the coverage limit you selected. 

What information is required for me to obtain Safe Deposit Box Insurance? How secure and private is the information I provide to SDBIC?

You need to know the branch location of your Credit Union where the safe deposit box is located and the last two digits of your box.  You also need to provide your contact information including your date of birth.  You do not need a list of the property, appraisals or any other documentation relative to the contents in your safe deposit box. You simply select the coverage amount and pay the corresponding premium and you have protection and peace of mind. 

SDBIC employs industry leading technology to protect your information. As important, we limit the amount of personal information we require to obtain coverage.  The amount of insurance protection you select is not reported to any agency or entity other than to our A rated insurance company which is underwriting the coverage limits.  In the event of a loss we do not report any loss payments to federal or state agencies.  

How do I determine the amount of coverage to carry on my safe deposit box?

You should estimate the value of the contents you intend to keep in the safe deposit box at any one time.  Keep in mind that the rise in the value of precious metals such as gold, silver and platinum typically used in jewelry and watches has increased dramatically over the last five years causing significant appreciation in the value of those items. 

If I have more than one safe deposit box, do I need to insure each safe deposit box separately? How much does Safe Deposit Box Insurance cost?

Yes, you need to obtain a policy for each box.  The cost depends on the coverage limit you select. Just choose the amount of coverage and find the corresponding premium cost in the pricing schedule.  It is relatively inexpensive with insurance starting at $25 annually for $5,000 of coverage.  There is no deductible so there is no out of pocket cost when a loss does occur.

What events does Safe Deposit Box Insurance insure against?

Burglary or robbery, fire, explosion, mudslide, flood, tsunami, tidal wave, terrorist attack or act of war, hurricane, tornado, landslide, water or sewerage from the plumbing or sprinkler system and any other man made or natural disasters.

Coverage is not provided for breakage or damage to property caused by earthquake tremors. Damage caused by other covered perils such as fire, gas and electrical explosions, robberies or water damage incidental to the earthquake are covered. 

Is property I remove from the safe deposit box insured for any period of time?

No, the coverage limit only applies to the property that is physically in the safe deposit box and vault at the time a covered loss occurs. If the property has been removed from the safe deposit box or vault prior to the occurrence of a covered loss, there is no coverage for that item.

Do I need to be the named renter or lease holder on the safe deposit box to insure it? Do I need to own the property in the safe deposit box to insure it with SDBIC?

Yes.  The insured named on the policy must be a named renter or lease holder on the Credit Union agreement for the insurance coverage to be effective. If there are multiple parties on the Credit Union’s rental / lease agreement, only one needs to be named on the policy.  However, you can add up to one additional named insured on the policy so that the insurance and Credit Union rental / lease agreement are consistent.

Any property owned or lawfully in your control is covered subject to the coverage limit purchased when it is in your safe deposit box.

When does the Safe Deposit Box Insurance become effective?

Insurance coverage becomes effective once you have completed the application and payment has been received.

If you prefer to mail or fax a completed application form to SDBIC, processing time is generally 2 business days from the time your written application is received by our office to successful issuance of your insurance policy.  Insurance coverage becomes effective once we have successfully processed your application and payment has been received.  It is important to provide current contact information,with an email address when available, on applications submitted through regular mail or fax in order for SDBIC to complete the process.

Once coverage is in effect, you cannot file a claim for a flood or hurricane related loss occurring during the first 14 days from the effective date of coverage on the initial policy year.

Do I need to reapply for Safe Deposit Box Insurance each year?

No, you will receive an email or mailed notice from SDBIC 30 days before your coverage expires advising you that your safe deposit box coverage will automatically renew for another year. You will be alerted if there was a change to your annual premium.  

Your insurance coverage will remain in place and continue to renew annually until you tell us to discontinue your coverage. 

For your convenience, we strongly encourage you to set up an online account with us as you have immediate access to your policy and easy payment options once you login to our site.

What should I do if a covered loss occurs? How does SDBIC determine the amount of my covered loss following an insured event?

Immediately notify SDBIC of your covered loss at 224-227-6181.  You will be asked to submit a proof of loss statement setting forth the amount of the loss with Claim Form located under FAQ 2 on the SDBIC FAQ webpage.  You will be paid the lesser of the full coverage limit that was in place at the time of the covered loss or the cost of repairing or replacing the damaged contents in the safe deposit box.

Are coverage limits above $5,000 available?

Yes, limits up to $1,000,000 and more are available.  Please contact SDBIC if you desire limits above $200,000 at 224-227-6181 or email us at contactus@sdbic.com.

 

Learn More

Call PrimeTrust at 765-289-2148 to ask about safe deposit box availability at your nearest branch.

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