Insure Precious Metals Correctly
If you want to buy gold or silver, you usually have to deal with the right storage. However, one factor that is often neglected is insurance.
Precious metals in gold deposits or safe deposit boxes are usually not insured
Many gold buyers decide to have their treasure kept in a bank safe deposit box, in a depot or directly with the gold dealer. Although they have to pay fees for this, they can look forward to increased protection, because these high-security lockers are very secure against burglary.
Valuables that are kept in a safe deposit box or a high-security safe are insured, but not automatically. However, some insurance companies offer such services.
Insure precious metals stored at home
Household contents insurance is responsible for insuring all valuables in the home. It usually works in the following cases:
- Damage to all mobile items from fire, tap water, or storm
- Damage caused by theft after burglary
- Some tariffs include protection against bicycle theft
- Certain residential areas require additional clauses, for example protection against flooding
Household contents insurance is usually suitable for anyone who has invested a lot of money in their home or cannot or does not want to replace it themselves in the event of loss. If you want to insure your precious metals, you are also well advised to take out household contents insurance.
Household contents insurance is what is known as replacement value insurance. This means that the customer usually does not get the value of his items replaced, but is entitled to the replacement price. This is particularly important for precious metals like gold.
A safe is required for high monetary values
Most insurance policies have clauses that require large gold holdings to be kept in a safe. This safe must in turn meet certain requirements in order for it to be recognized by insurance companies:
- More than 200 kilograms heavy
- Firmly anchored to the floor or wall
- Certification by a testing agency
- Security level according to content value
In principle, experts recommend storing precious metals in a high-security safe rather than keeping them in your own four walls. If you still want to keep your gold at home, you should buy household contents insurance with the appropriate clauses or adjust the conditions of an existing insurance policy.