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Yes, you can insure your safety deposit box through specialized policies. While banks often do not provide direct insurance for items within your box, you can acquire personal property insurance or specific policies tailored for deposit box content. By choosing a deposit box form with insurance, you safeguard your valuables against potential loss.
The safe deposit box is a storage space you rent from the bank. Its contents are kept private, and the bank doesn't know what you put in there.
A safe deposit box is not a deposit account. It is storage space provided by the bank, so the contents, including cash, checks or other valuables, are not insured by FDIC deposit insurance if damaged or stolen. Also, financial institutions generally do not insure the contents of safe deposit boxes.
A person can place just about anything that will fit in a safe deposit box in one. Holders of these boxes are granted complete privacy by the financial institutions where they're located. Someone could store cash, jewelry and other valuables, savings bonds, deeds to property and information about an inheritance there.
What if the bank has failed? If the bank recently failed, the FDIC or the bank that assumed the failed bank's business may have the account or safe deposit box contents. After a period of time, the FDIC or the bank must transfer unclaimed property to the state.
However, McGuinn warns, banks do not provide insurance for the contents of your safe deposit box, so you may want to add a scheduled personal property endorsement to your homeowners or renters insurance to make sure you're covered.