Why I have a Safe Deposit Box?

In an era where cloud computing, electronic money, and digital investments are slowly becoming the norm, is there still room for a safe deposit box (SDB)?  Some banks, profit-centred financial institutions, and finance experts often unanimously say safe deposit boxes are obsolete, unnecessary, and burdensome to operate.

However, when I think about it, people still want to store their wealth in physical objects including bullion, jewellery, art, and heirloom along with irreplaceable objects. I know I do. In my mind, these priceless objects need utmost protection that typical home alarms, locks and safes just cannot cover. What’s more, there are copies of my personal and financial documents that are better stored in a remote location where they aren’t exposed to theft or damage.

So, why do I have a safe deposit box in this modern time? Let me begin to share with you by going through some of the reasons why I believe an SDB is still relevant today. Let’s get started!

Burglaries are Commonplace

The Australian Bureau of Statistics (ABS) defines home invasions or break-ins as “an act of unauthorised forced entry into a home or other place where a person permanently resides.” In a report the ABS published in 2018, they found that that between 2016 and 2017, a total of 228,300 Australian households experienced at least one incident of attempted break-in.

Moreover, many of these households, or a total of 169,000, had property stolen with 66,900 households reporting that personal items were taken from them during the break-in.

 

You Have Items that are Irreplaceable in the Event of a House Fire or a Flood

According to the Country Fire Authority, were 1,588 preventable house fires that caused more than $42 million in property damage in 2018. The top causes of these preventable fires include the kitchen, followed by lounge rooms, bedrooms, chimneys and then garages. ABC News reported in March of 2018 that 18 homes were damaged in Victoria during the worst bushfire of the season. Don’t forget the very recent cases of the fires which destroyed home and the owners possesions on the Sushine Coast and the Gold Coast in the last few months of 2019.

Moreover, Australia has always been vulnerable to floods with the earliest recorded notable flooding happening in 1806 in Maitland, NSW. In recent history, the costliest flood happened in Ipswich and Brisbane in January 2011. Geoscience Australia notes that “this flooding resulted in a cost of 6.64 billion Australian dollars, including deaths and injuries but excluding most indirect losses.”

Our wet season is around the corner and there is no time like the present to start preparing.

 

Storing Priceless items at Home Drives Up Your Home Premium

The cost of the items you store at home affects insurance valuations significantly. If you keep items like paintings, jewellery, bullion, and investment certificates at home, your insurer will add the cost of insuring these objects on top of your base premium.

 

Your Wealth is Better Protected at a Dedicated Facility

Safe deposit boxes, unlike home safes, offer far more security for your valuables. The locking mechanism of a home safe can be easy to bypass. On the other hand, a safe deposit box located in a private vault isn’t easy to get in.

What’s more, typical “waterproof” home safes are only rated for 24 hours in just 15cm. of water. This means that if you store valuable documents like stocks and bonds at home, you could end up losing them in the event of a tropical cyclone and a flood.

A home safe also only offers 30 minutes of protection to your possessions before they are reduced to cinders or ash.

brisbane flooding

People are moving out of Bank Safe Deposit Boxes and you should too.

Safe deposit boxes used to be a standard offering for banks. However, in recent years, big banks have stopped offering SDB accounts to their customers.

At most banks that still offer SDB you do not have direct access to your box.  You pass over your items and trust that the bank staff member puts it in the banks SDB that you have hired.  This is not the service I want when storing my valuables! Not only that, have you heard about the bank bail in law? The good news is you can still keep your valuable possessions safe through private safe deposit box providers.

At Private Vaults Australia, we offer you a purpose-built safe deposit box in an independent facility with state-of-the-art security, so your personal assets are protected against threats such as theft or robbery, fire and flood in your home.

For more info on why I have a safe deposit box, contact PVA or read the PVA blog for more interesting news, tips and ideas to guide you.

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