Hatton Garden Safety Deposit Box Break-in Causes Heartache for the Many Uninsured

The recent high profile break-in at Hatton Garden Safe Deposit Company has left many of the safety deposit box owners in complete shock when it was revealed that over 70 deposit boxes were targeted in the Easter raid.

Burglars used heavy cutting equipment to break into safety deposit boxes in a vault in London’s jewellery quarter. Jewellers, who often keep their gems in the safes during long weekends, fear a vast amount of diamonds, watches and cash have been taken. Among the most valuable items feared to have been stolen is a half-cut aqua diamond worth £500,000.

The devastation is exacerbated for many as they didn’t have safety deposit box insurance in place. Michael Miller, a jeweller from Knightsbridge, London, said he ‘felt sick’ at the prospect of losing up to £50,000 of jewellery and watches, which were uninsured.

‘I can’t believe this has actually happened,’ he said; ‘If you look at their website, they say they are the safest place around. There is a double-door entry and a locked system to go in. You have to go through two doors to get in the place and then get into the vault.

The gang cut through two rows of metal security bars before disabling the alarm on the vault’s main door, a source claimed.

Without insurance, safety deposit boxes can leave you more exposed

Whilst the majority of the safety deposit box owners were local businesses, it highlights a common pitfall with home and business insurance. Many wrongly believe that items kept in safety deposit boxes will be included under a standard insurance policy however this is not the case. You need to take out a separate safety deposit box insurance policy which covers the items for all risks including theft and fire damage.

James Mant from high net worth insurance brokers Greenfield Insurance, who specialise in safety deposit box insurance, says

Without the right insurance in place, putting valuables into a safety deposit box may leave you more exposed than if you kept your gold, jewellery or cash at home. You think they would be completely safe but it’s a false economy without the cover there to protect you. The mad thing is, the insurance is really simple to arrange and premiums are a lot lower than you think.

There aren’t many UK insurers that provide safety deposit cover however we have access to the key players and can quickly arrange protection starting from £150 for £50,000 of cover”.

Features of safe deposit box insurance

Fortunately, it’s not every day you read about a break-in to a safety deposit box vault but that doesn’t negate the need for insurance. Safety deposit box insurance arranged by Greenfield includes:

Cover for physical loss or damage
No policy excess
No need to specify individual items unless they are valued more than £25,000
Newly acquired items will be covered up to 25% of the sum insured (for 60 days from purchase date of jewellery)
Option to have items covered on an agree value basis or fair market value basis*
Theft cover (must be signs of forcible and violent entry)