Decrease Your Insurance by Storing Your Valuables in a Safety Deposit Box

Critical Factors That Drive Insurance Premium Costs

If there’s one thing a home insurance policy offers people, it’s peace of mind and assurance. In the event of natural disaster or even theft, most policies offer homeowners the protection they wouldn’t normally get if they weren’t insured.

However, according to the Insurance Council of Australia, up to 1.8 million residential households do not have a building or contents insurance policy to protect their property. This is an alarming scenario since the benefits of having your home insured outweigh the cons. Having insurance not only protects homeowners from lawsuits and property damage but most policies also offer reimbursement for lost items.

The report further explains that the uninsured often see little benefit in getting insurance. They are either sufficiently wealthy that potential loss is insignificant or they have very little to insure.

The good news is that paying for insurance doesn’t always have to be overly expensive. Today, we will discuss how you can decrease your insurance by storing your valuables in a safety deposit box.


The cost of home insurance premiums is often driven by several things.

This includes:

  • The features and characteristics of your home including its age, the type of structure, the materials used, the type of roof or garage you have, the electrical wiring used, and more;
  • The location of your home and whether or not it is close to a fire station or is exposed to extreme weather such as hurricanes, tornadoes, earthquakes, flooding and the like;
  • The protective features currently installed in your home including smoke detectors, fire extinguishers, sprinkler systems, and burglar alarms;
  • Your claims history;
  • Personal factors such as your credit rating, whether you smoke or not, or if an elderly is residing in your home; and
  • The cost of the items you store in your home.

These factors help insurers determine the amount you’ll pay in premiums on a monthly, quarterly, bi-annual, or annual basis.

Why Do You Need a Safe Deposit Box?

For many, a safe deposit box (SDB) is simply a secure place where you can store important items that may be difficult or impossible to replace one damaged or stolen. In particular, SDBs operated by private vault operators offer the best multi-faceted security for valuable items since they are not affiliated with any bank and are not regulated by the government. But did you know that renting an SDB can also help lower your insurance premiums?

Generally, insurers charge higher premiums for valuable items such as expensive jewelry, bullion, precious metals, and heirlooms that are stored at home since it increases the coverage a homeowner needs. In addition, insuring such items is often added on top of an existing home insurance policy depending on the insurer. This added cost can and will increase your premium.

However, if you rent a security box from a third party provider, then two things will happen that will help lower your premium costs 1) It will cost you less to rent a private SDB than to purchase additional coverage on top of your existing policy; and 2) Most insurers offer discounts on premiums if you store valuables outside of your home particularly for jewelry.

Note, however, that most companies will require you to keep an updated list and photo documentation of the contents of your SDB to document your potential discount. Also, some insurers will also require that these items should only be taken out occasionally and that advance notice should be given if the owner will use them.

Private Vaults Australia for your Safe Deposit Box needs

If you would like to decrease your insurance by storing your valuables in a safety deposit box, then look no further than Private Vaults Australia. We have created a world-class independent safety deposit box facility where our clients have complete discretion, unparalleled security, and absolute peace of mind for their high-value assets.

What’s more, we offer complimentary insurance of $20,000 per SDB. Our Insurance is provided by underwriters at Lloyd’s of London and we offer the ability to increase your insurance in conjunction with our underwriters

Call us to know more about how we can help you with your secure storage needs and more.

Register now to receive our opening offer - 2 Months Free on your first year, limited spots are available

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