How safe is that safe-deposit box?

Mr. Dahill recalls that the bank initially showed no interest in working with the box holders. "But after the lawsuit was filed," he says, "the bank said it might consider making settlements with individuals, and it has, in fact, reached settlements with a number of victims."

Water is often another cause of concern for safe-deposit-box holders. Severe flooding in Houston in 2001, reportedly ruined a 1952 Mickey Mantle rookie baseball card kept at the Houston branch of the Bank of America. The card was valued roughly at $30,000 and the owner had no insurance, says McGuinn.

"It's virtually impossible for banks to offer safe-deposit boxes that are truly watertight," McGuinn adds. To make matters worse, he notes, many safe-deposit vaults are in a bank's basement - often the first place inundated when a river overflows.

Other box holders have experienced problems with theft.

An Idaho multimillionaire, after entering his bank's vault, discovered that his entire box was missing, according to Gary Slette, an attorney from Twin Falls, Idaho, who represented the victim. It seemed that a thief used a stolen key to access the box, absconding with rare gold coins, precious gems, and cash valued at hundreds of thousands of dollars.

The multimillionaire, who did not want his name used for this story, won his case against the bank in court after proving that it was possible to have that amount of cash and valuables in a 2-by-5-inch safe box, says Mr. Slette.

In spite of these perils, safe-deposit boxes remain one of the most secure ways to protect valuables. Experts recommend people use safe boxes for documents that are impossible - or at least a major nuisance - to replace. The list includes real estate deeds, titles, mortgages, leases and contracts; stock and bond certificates; insurance policies; birth, marriage, and death certificates; divorce decrees; and immigration papers, to name a few.

Some box holders also like to keep photographs or a video of home possessions in a safe deposit in case they're stolen or destroyed by fire or flood.

Safe-box users, experts say, should avoid storing anything that they might need to get their hands on immediately, like a passport for travel, because the bank might be closed.

And what about a will? That depends on what state laws say about who has access to a safe-deposit box in the event of a person's death. Some states allow heirs and executors access to safe boxes in the event of the death of the box holder; some do not.

And just as a precaution, McGuinn suggests visiting a safe-deposit box at least once a year to make sure everything's OK.

"Lack of activity or unpaid rental fees on your safe-deposit account could lead a financial institution to believe you've abandoned your safe box," he says.

Experts offer the following suggestions when renting a safe-deposit box:

• Hold on to documents proving you possess a safe-deposit box. Keep the original lease agreement in a secure place at home.

• Ask for a copy of your bank's rules and regulations in regard to safe boxes. Read and file it with the lease agreement.

• Keep a detailed list of everything in the box.

• Make photocopies of every document in the box, as well as photographs of valuable items like jewelry. Keep this evidence at home with your lease agreement, along with any proof of ownership.

• Buy "floater" attachments for your homeowner's or tenant's insurance policy on any valuables stored in a safe box.

• Visit your box at least once a year.

• If you move, notify your bank's safe-deposit division of the new address. Changing the address on your bank accounts may not be sufficient.

• If your area is prone to flooding, keep valuable documents in airtight containers inside the safe box.

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