The correct storage of valuables should play an important role for every policyholder. Many people keep cash, jewelry or watches in seemingly secure hiding places, but potential coverage problems and risks are often overlooked or disregarded.
This blog post takes a closer look at the potential challenges we face every day when it comes to securing our valuables. We will focus on physical security and emphasize how clear communication with experts can avoid potential coverage problems and protect assets in the best possible way.
I. Cash and valuables
Safe storage of cash and valuables is essential to minimize potential risks. A challenge for insurers arises when cash and valuables are stored openly or only protected by a simple lock.
Examples of this would be: the bowl lies open on the toilet table, the expensive watch is kept in a simple lockable bedside cabinet, or grandmother’s sacred jewelry is kept in an inexpensive furniture safe without a security classification. If a burglary occurs, there may be gaps in cover in all three examples due to insufficient sublimits. It is therefore in the policyholder’s own interest to ensure that items of considerable value are well stored and cannot be found immediately in the event of a burglary. Storage in unlocked furniture, under or in mattresses or pillows is strongly discouraged.
II Safes and security classes: The key to the sum insured
The differentiation between a simple lock and security classes plays a key role when it comes to the secure storage of valuables. Security classes (EN1, EN2,…,E14) are basic categories that define the security level of safes and have a direct influence on the maximum amount of cover offered by insurers. In close consultation with the insurer, storage in safes is recommended.
Safes must be installed by a company authorized by the manufacturer in accordance with the manufacturer’s specifications, such as proper anchoring in the floor. A certificate is issued after successful installation. It is important to emphasize that safety classes are only valid if the manufacturer’s installation instructions are followed. Example: a safe with a tare weight of 120 kg of VSÖ class EN2 is broken into. The safe was not properly anchored. The sum insured is therefore no longer € 65,000, but only € 10,000.
The higher the security level, the more robust the safe walls are and the more resistant the safe is to forced opening. The installed safe locks must be suitable for the respective security level of the safe. It is important that the chosen safe not only meets the security requirements, but is also recognized by the insurance company, otherwise you risk underinsurance or, in the worst case, a refusal of cover. The VSÖ classes are recognized by all insurers in Austria.
III: Effective security strategies by listing and, if necessary, an alarm system
If it is not possible to cover the full value of all items by storing them in a safe, there is still the option of installing an alarm system with a direct connection to the police, for example, in consultation with the insurer. The combination of safe and alarm system enables the insurer to increase the sum insured.
Alarm systems ensure efficient monitoring and can initiate immediate measures in the event of an emergency. Activation of the alarm system is crucial, otherwise the insurance company will not be liable in the event of a claim. Policyholders should ensure that their alarm system is working properly, is maintained and meets all the insurer’s requirements to avoid potential coverage problems. Please note, however, that some insurance companies only require the use of an alarm system if the sum insured exceeds, for example, 1 million euros. The existence of an alarm system must be reported to the insurer if it has been explicitly requested. The combination of listing, physical security and sensible security electronics creates a comprehensive protection strategy for works of art that goes beyond conventional insurance measures.
IV. An object of value or utility?
The distinction between valuable items and everyday consumer goods often requires individual examination. For example, in the case of a valuable watch, it must be checked on a case-by-case basis whether it is considered an object of value or an object of daily use. The question of when something is considered an object of value and when it is considered an object of use goes beyond the pure acquisition value when considering the rarity of the object of value. It is therefore advisable to carefully examine this demarcation in order to develop an appropriate security strategy. Reports in the media often give the impression that watches above a certain value are automatically considered valuables and therefore not only require their own sum insured, but must also be specially stored. In a ruling from the year 2000, the Supreme Court (OGH) decided that the distinction as to whether a watch is an object of value or utility is not to be made solely on the basis of its value, but primarily on the basis of material properties. A “simple” watch made of steel can easily cost over €10,000, but is generally classified as a commodity. It therefore does not require separate storage. Another “simple” watch, which is set with gemstones and costs “only” €2,000, is considered an object of value due to the decorative properties of the gemstones. It therefore requires suitable storage in order not to risk a gap in cover.
V: Carefree carrying, safe storage: Our carrying risk insurance
Especially in connection with valuable jewelry or watches, wearing them on special occasions is not only a pleasure, but also carries an increased risk of loss. A defective clasp, a broken folding clasp or a torn watch strap can quickly lead to unintentional loss. Carrying risk, a special insurance option, offers protection in such situations. If you wish, the risk of loss covers damage caused by losing, leaving, misplacing or forgetting. This means you can not only store your valuable possessions safely in the safe, but also wear them on special occasions without having to worry about possible losses.
Conclusion: Safety begins with well thought-out planning
Securing valuables at home requires well thought-out planning. In addition to secure storage in safes or special
storage options, the correct documentation is important. The creation of inventory lists, supported by detailed photographs, especially for unique or antique pieces without existing invoices, is essential.
Open communication with the insurer is just as important. Clear agreements on security measures and the regular adjustment of insurance sums are essential. Careful planning and communication alone can prevent potential coverage problems. Protecting our valuables requires a holistic concept that includes both preventive and reactive measures. Only when physical security, precise documentation and effective communication go hand in hand can the comprehensive security of our valuables be guaranteed.
Under the following link you have the possibility to download a risk analysis for your valuables as well as the safe security classes as a PDF.
We are always at your side as a competent partner and offer customized solutions to provide you with the best possible advice. With our many years of experience and expertise, we understand the individual requirements of our customers and offer a comprehensive range of services. Get in touch with us today for a personalized consultation.
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Home security, coverage problems, solutions, valuables, storage, policyholder, risks, cash, alarm systems, sum insured, safes, security classes, protection strategies, art insurance, listing, documentation, valuables, Kotax Versicherungssysteme GmbH, burglary, sublimits, safe locks, insurance requirements, underinsurance, art objects, jewelry, watches, security electronics, breach of duty
