Safe or Vault?
Most people have never experienced a home break-in or a major house fire – but that doesn’t mean such events never happen. There are approximately 3,300 burglaries every day in the United States, and it’s common for the number to top one million in a year. And a study by the National Fire Protection Association found an estimated average of 343,100 home fires per year.
Of course, we all take steps to protect our homes from these sorts of catastrophes. We buy locks, smoke detectors, and security systems. But less attention is typically paid to protecting the documents we keep inside our homes. We don’t usually think about it this way, but should a fire or theft happen, they may well be the most important possessions you own! So, it’s worth spending a little time and thought on how to keep them safe.
Generally speaking, while safety deposit boxes in banks and credit unions are the most secure places to store important documents, there are files that you may prefer to keep at home. For instance, original wills, trust instruments, and power of attorney documents — the thinking being that if a family member dies, their bank box may be sealed for weeks, which could result in costly delays and stressful red tape to navigate around.
For that reason, if you don’t have one already, strongly consider buying a secure, fire-proof home safe. I bought our first one at Costco although they’re readily available. Consider storing the following documents in the safe: Original wills and trusts, passports and Social Security cards, medical directives and power of attorney documents, original deeds and titles, and important contracts and receipts.
Other less financially sensitive documents like birth and marriage certificates, original insurance policies, certificates of deposit, or family heirlooms can be stored in a bank vault. I prefer the safe though. I’ve never had a safe deposit box.
I just heard a sad story that a friend’s father passed away and they couldn’t find the safe deposit box key. They had to get a locksmith to meet them at the bank. After all that time, trouble and expense the vault was empty! There still may be times where using a bank would make sense.
Alternatively, electronic or “digital” vaults are an increasingly effective way to protect important documents and information. However, those don’t work for keeping originals. We keep the original in the safe and keep copies electronically.
Wherever you choose to keep your important documents make sure someone knows where and how to locate them!
