As one of the most precious metals in the world, storing gold needs careful planning and storage. You can choose home storage or opt for professional vaults, with the latter offering extra security. Aside from storage, it’s also paramount to get your gold insured as a way to safeguard your investment. In today’s article, we’ll highlight the importance of insuring your stored gold and ensuring that you have the right coverage.
Why should I insure my gold?
Regardless of what gold storage options you choose, it’s important to also insure it. Given how gold is a priceless asset, this precious metal is prone to several high-risk factors, such as:
Theft. Whether you choose home storage or a professional vault, there’s always the possibility of burglary happening in both storage options, serving as one of the biggest threats to gold ownership.
Natural disasters. Aside from burglary, another worrying risk owners should be wary of is natural disasters like fire or earthquakes, which can damage your gold.
Damage. If handled irresponsibly, there’s a chance that you may damage your gold from accidental slipping or scratching, which further diminishes its value.
Getting insurance will protect your investment and help you reduce these risks.
What are the different types of insurance for stored gold?
Homeowner’s insurance. For people who want to store their gold at home, make sure that your homeowner’s insurance policy covers theft and damage, though it may only cover a small portion. Review your policy since standard policies have specific limits on valuable items. Speaking of home storage, you can choose a safe and secure area in your home and incorporate a secret compartment; make sure to choose a trustworthy builder when doing this. Additionally, you can also install alarm systems for added security.
Vault insurance. If you chose a professional vault for gold storage, the vault may already have insurance coverage. Again, it’s important to read through the vault’s insurance policy, especially its specific terms and conditions.
Renter’s insurance. Renter’s insurance is similar to homeowner’s insurance in the way that it only provides limited coverage; it’s usually even lower than homeowner’s insurance. Furthermore, it may also require additional riders for precious items.
Specialized jewelry insurance. This insurance caters to precious metals and prized personal jewelry. What’s more, it also offers comprehensive coverage for loss, damage, and theft with higher coverage limits.
Helpful tips for insuring your gold.
Get your gold appraised. Hire a professional to get your gold appraised properly to determine its value.
Make a detailed inventory. Keep a detailed inventory of your gold; take photographs and descriptions, and note if it has any unique traits or blemishes.
Secure your storage. Choose a gold storage option that’s secure and can only be accessed by you; safety boxes are a good choice for those who wish to store them at home. However, if your mind feels more at peace if it’s stored in a more secure location, choose professional vaults.
Review your insurance policy. Finally, review your insurance policy annually to see if it covers your gold.
By following these steps, you can protect your gold investment by availing of insurance. Keep in mind that the value of gold fluctuates, so annually review your insurance policy to ensure that it’s up to date with the current market value.