Do you insure your Gold?

[steve]

Did you end up going with them, Steve?

I did, makes it easier to sleep    https://safedepositboxinsurance.com/

[ochotona]

Did you end up going with them, Steve?

I did, makes it easier to sleep    https://safedepositboxinsurance.com/

So LESS expensive coverage than Hugh Wood ANA, and you can insure non-coin valuables also? 

[Libertarian666]

Did you end up going with them, Steve?

I did, makes it easier to sleep    https://safedepositboxinsurance.com/

So they throw in an Ambien prescription too? What a deal!

[sophie]

I found them online some time ago.  It made sense, in that the Hugh Wood insurance doesn't care whether you have your coins in a safe deposit box or sitting in a bowl in your living room, but obviously there is a big difference in risk between the two - and your insurance costs should reflect that.

The big question, though, is whether this company has ever had to pay out a claim, and if so, did they keep their promises?

[goodasgold]

The big question, though, is whether this company has ever had to pay out a claim, and if so, did they keep their promises?

Excellent point, Sophie. I read the prospectus, and they even say they pay for losses caused by acts of war. So far as I know, no insurance company does this, so I am skeptical, if not downright suspicious, about this outfit.

[steve]

I found them online some time ago.  It made sense, in that the Hugh Wood insurance doesn't care whether you have your coins in a safe deposit box or sitting in a bowl in your living room, but obviously there is a big difference in risk between the two - and your insurance costs should reflect that.

The big question, though, is whether this company has ever had to pay out a claim, and if so, did they keep their promises?

When I spoke with them I had the same question. They told me so far they never had to pay out a claim. However I felt that it was still worth getting the insurance.
This product is administered by Safe Deposit Box Insurance Company and underwritten by AXA Art Americas Corporation on AXA Insurance Company paper. AXA Insurance Company maintains an “A (Excellent)” Financial Strength Rating and an “a+” Issuer Credit Rating from A.M. Best. AXA Insurance Company has a financial size Category of VIII. 
My hope is I never have to file a claim to find out.

[stuper1]

Their website says that they won't pay if your gold just goes missing (i.e., if there is no sign of break in).  I'm not an expert on safe deposit box burglary mechanisms.  Does anyone have an idea what the chances are of an inside job versus an outside job?

[Libertarian666]

I found them online some time ago.  It made sense, in that the Hugh Wood insurance doesn't care whether you have your coins in a safe deposit box or sitting in a bowl in your living room, but obviously there is a big difference in risk between the two - and your insurance costs should reflect that.

The big question, though, is whether this company has ever had to pay out a claim, and if so, did they keep their promises?

When I spoke with them I had the same question. They told me so far they never had to pay out a claim. However I felt that it was still worth getting the insurance.
This product is administered by Safe Deposit Box Insurance Company and underwritten by AXA Art Americas Corporation on AXA Insurance Company paper. AXA Insurance Company maintains an “A (Excellent)” Financial Strength Rating and an “a+” Issuer Credit Rating from A.M. Best. AXA Insurance Company has a financial size Category of VIII. 
My hope is I never have to file a claim to find out.

Of course they have an excellent financial strength rating if they have never had to pay a claim!

Can I start an insurance company like that too?

[StdDeviant]

I finally looked into a rider on coins in a safe deposit box. I was quoted an annual premium of a little less than 2% of the value of the coins. That seems like an awfully high expense ratio to tack onto Gold each year.

That's funny. It sounds like that insurer doesn't have much confidence in the security of safe deposit boxes.

Does that seem high to anyone else?

2% compounded over 35 years doubles the initial value.

So it sounds like the insurance company thinks 1/35 of all banks get their safety deposit boxes robbed and cleaned out each year.

Personally, I don't like the idea of insuring the gold. A. It raises the visibility of what I own. Who knows how many employees of the local insurance broker and their home office will know what I have and where it is. B. Super expensive.

I'd rather spread it around a few places, assume the likelihood of losing the contents of any given safe deposit box is extremely low (and a tolerable risk). Although I'd stand to lose 1/5 of my gold if I, say, spread it among 3 safety deposit boxes and 2 non-bank hiding places, losing only one of those "stashes" would mean a loss of 20% of my gold, or 5% of my net worth. Given the cost of insurance at 2% per year on the gold if it were all in safety deposit boxes, or 1/2 % annually of my entire portfolio, unless I fear a safe deposit box robbery every 10 years, suddenly the risk of self-insurance and diversifying my storage sites seems very tolerable to me!

[flyingpylon]

A rider on a homeowner policy is typically around 2%, but you can get insurance through a company that insures collectibles like Hugh Wood Inc for .3%.

[steve]

I insure my gold. Well worth the peace of mind https://safedepositboxinsurance.com

[dualstow]

I insure my gold. Well worth the peace of mind https://safedepositboxinsurance.com

Have you used them for a long time, Steve?
I probably don't have enough coins to justify insurance, but I'm getting there, and will probably want to insure when I hit retirement age.

[dualstow]

And also, Steve, do you have to update things with major changes in the price of gold or you just tell them how many oz coins you have?

[steve]

And also, Steve, do you have to update things with major changes in the price of gold or you just tell them how many oz coins you have?

I insure my safe deposit box for a set amount for a set price. I do not have to tell them what is in the safe deposit box. If there is a bank robbery where the box is broken into or unauthorized entry, etc. They will pay the amount I am insured for. It is up to me to increase my coverage if I feel like the contents are worth more then the amount I am insured for.

[yankees60]

I finally looked into a rider on coins in a safe deposit box. I was quoted an annual premium of a little less than 2% of the value of the coins. That seems like an awfully high expense ratio to tack onto Gold each year.

That's funny. It sounds like that insurer doesn't have much confidence in the security of safe deposit boxes.

Does that seem high to anyone else?

2% compounded over 35 years doubles the initial value.

So it sounds like the insurance company thinks 1/35 of all banks get their safety deposit boxes robbed and cleaned out each year.

Personally, I don't like the idea of insuring the gold. A. It raises the visibility of what I own. Who knows how many employees of the local insurance broker and their home office will know what I have and where it is. B. Super expensive.

I'd rather spread it around a few places, assume the likelihood of losing the contents of any given safe deposit box is extremely low (and a tolerable risk). Although I'd stand to lose 1/5 of my gold if I, say, spread it among 3 safety deposit boxes and 2 non-bank hiding places, losing only one of those "stashes" would mean a loss of 20% of my gold, or 5% of my net worth. Given the cost of insurance at 2% per year on the gold if it were all in safety deposit boxes, or 1/2 % annually of my entire portfolio, unless I fear a safe deposit box robbery every 10 years, suddenly the risk of self-insurance and diversifying my storage sites seems very tolerable to me!

This all seemed quite logical and persuasive to me. Anyone see any flaws in his logic?

Vinny

[Smith1776]

I'd have to agree. That logic seems very reasonable to me, though I don't keep any of my gold in my own home personally.

[Libertarian666]

I'd have to agree. That logic seems very reasonable to me, though I don't keep any of my gold in my own home personally.

I didn't know you had any physical gold left after that unfortunate boating accident.

[Smith1776]

I'd have to agree. That logic seems very reasonable to me, though I don't keep any of my gold in my own home personally.

I didn't know you had any physical gold left after that unfortunate boating accident.

Oh god, I know. Why do we ALL seem to get into boating accidents around here??

[steve]

Yes I insure my gold.
I use https://safedepositboxinsurance.com/

[dualstow]

I’m thinking about going with the same insurer as Steve above. The quote for the first amount I entered comes out to 0.2% (0.002). Very affordable peace of mind.
Does anyone else use them?

[Mark Leavy]

The best insurance is diversity in physical storage.

Multiple small town local bank safe deposit boxes, some wine vaults, some garages, some holes in the Navajo Nation.

[Hal]

Deep storage - insured. Places like SGPMX (ie Fort Knox-ish)
https://sgpmx.com/services/storage

Rebalance allocation- storage fee also includes insurance. Eg. Perth Mint
https://www.perthmint.com/storage/depos ... ogram.html

[dualstow]

The best insurance is diversity in physical storage.

Multiple small town local bank safe deposit boxes, some wine vaults, some garages, some holes in the Navajo Nation.

A great idea. I just don’t feel I have enough to spread it out beyond the bank and my parents’ safe. Definitely have enough at this point that it would hurt to lose it, though. When I saw how cheap the insurance was, and my box being free, it feels like the right next move. Also, I make sure to visit my box once a year. Multiple boxes equals multiple visits. And finally, I like that there’s really only one place the missus will have to visit to collect.

(They were talking about the Navajo tribe on the radio just as I read your line about Navajo holes).

Deep storage - insured. Places like SGPMX (ie Fort Knox-ish)
https://sgpmx.com/services/storage

I’m salivating!

[dualstow]

Just got my first nonzero bill for my safe box. I’ve had it for years. Banks need to make extra scratch I guess.
I’ll add it to the cost of insurance, which is cheap.