Nobody likes to think about the risk of burglary or the loss of valuables and treasured possessions, but this is an especially key area for high net worth individuals who generally have high-value items such as jewellery. Therefore, if you keep valuable items in your home, you might want to consider installing a safe.
The benefits of this are numerous. For one, some contents insurers will actually require you to have a safe installed to protect your household valuables. You may also see a benefit in terms of a reduced annual premium, as installing a safe could reduce the need for a high-value claim. A safe will also give you great peace of mind, particularly if you travel often or have household staff.
Items in or out the safe
Of course, having a safe is not enough by itself to save you money on your contents insurance premium. You’ll need to carefully consider what is insured, and whether it’s insured on an ‘in-safe’ basis—you can’t just expect having a safe to reduce your premium, if the items in questions are regularly out of the safe. It all depends on your items.
‘Family heirlooms’ may not ever be worn, in which case there is a very strong argument for keeping them in a safe—especially because often, these items couldn’t be replaced like for like due to their emotional or historical value. For many clients, this is enough motivation to consider installing a safe.
Of course, this isn’t applicable for all jewellery—if you have high-value items that you wear every single day, such as an engagement ring or a necklace, insurers will likely waive the requirement for a safe. Some insurers will offer a ‘floating limit’ in which you can have a certain value of jewellery insured out of the safe at one time.
What sort of safe should you get?
Not all safes are created equal. Different safes are regarded differently by insurers, for example. A Grade 0 safe is equal to £60,000 in valuables, whereas a Grade 5 safe equals to £1,000,000 valuables. If your insurer requires you to have a safe, they will let you know what safe rating is required. It’s also worth planning ahead when it comes to buying a safe. If you have tens of thousands of pounds of jewellery, for example, and know you will acquire more in the future, it will probably be worth buying a higher grade safe now.
Size and material should also be considered. Not all safes are fireproof, which you will need if you’re protecting important documents.
The logistics of installing a safe
Installing a safe can save you money on your home insurance, but it’s also important to consider how, where and at what cost this will be done! As mentioned above, safes have different ‘grades’. You’ll also need to consider where your safe will be installed. Some are so heavy they can only be installed on the ground floor. The location of the safe could also be in the wall, in the floor, or freestanding. Seek careful advice from a specialist before proceeding with a safe installation.
Installing a safe isn’t the only action that might save you money on your insurance. Other deterrent actions include installing a CCTV system or a central station alarm. Insurance for high net worth individuals can be a complicated process, so the most important thing to do is to seek expert advice.
If you’d like further information, get in touch for a consultation and I would be happy to help.