Home not a safe haven for your hard earned cash

As domestic safe sales surge, esure warns homeowners that they could be left under-insured and exposed by keeping too much cash at home.

With sales in household safes up by a quarter in the last four weeks according to figures out today, esure home insurance is urging homeowners to think twice before transferring savings out of a financial institution and into their home as they are unlikely to be adequately insured.

The cash element of home insurance policies is there to effectively cover the amount of 'loose change' a family might have in the house at any one time.

esure has a limit for cash of £500 – even if it is held in a safe, no matter what the security grade of the device.

Homeowners looking for a safer place for cash from their current or savings accounts would be unwise to use their house as a vault. In the event of a break–in, homeowners are likely to be under–insured and would have no come back or compensation fund to fall back on if their money was stolen.

Mike Pickard, Head of Risk and Underwriting at esure home insurance, said:

"People looking for a safe place for their money should look further than buying a safe for their loft or under–stairs cupboard. Although a good quality domestic safe is the perfect option for petty cash, perhaps some jewellery, and a spare set of car keys, it isn't a good home for your savings. Consider renting a safety deposit box if you have decided that you want a substantial sum of cash to hand."

esure offer top tips on how to keep your cash safe :

1. Don't keep significant sums of money at home: check your contents insurance policy limit to make sure that you wouldn't be short–changed if the cash in your home was stolen or destroyed by fire.
2. Consider a safety deposit box: if you have decided to keep some of your savings in cash, look into renting a safety deposit box rather than stashing notes at home.
3. Do your research before buying and positioning a safe: if a safe is very strong and very well secured, it is very unlikely that a burglar would be able to get at the cash inside it and your home insurance would cover the other damage caused by a break–in. Therefore, consider choosing a higher–grade safe, review safety features before you buy and don't just opt for the cheapest option. Also, always follow advice on where to secure your safe within your home and never reveal safe codes or the location of safe keys – not even to close friends or family.
4. Dispose of safe packaging carefully: if you decide to buy a domestic safe, never leave out branded packaging for recycling or collection by the dustman as opportunistic thieves would be made aware that you have valuables or money in your home and this could increase your overall risk of burglary. Also, the make and model of your safe would be advertised to passers–by.
5. Keep it to yourself: if 'word gets out' that you have a safe – even if the amount you are storing is relatively low – this presents a moral hazard. So don't even talk to friends or neighbours about your security measures.

14 October 2008 © Moneyextra.com

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