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Dave Ramsey says: Keeping some cash at home in a safe is good option

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Dear Dave,

My wife and I are completely debt-free. We would like to have part of our emergency fund in cash inside a heavy duty safe at home.

How should we document this cash in the event of fire or theft?

Also, would our homeowners insurance policy cover cash?

— Will

Dear Will,

Typically, homeowners insurance policies have a limit as to how much cash they will cover.

I’d advise re-reading your policy, and double checking with your insurance agent just to be sure.

When it comes to documenting valuables, I’d suggest making a video or taking photographs. Just to be extra cautious, you could store these in a safe deposit box at your local credit union or bank.

Having some cash on hand is never a bad thing.

When it comes to the portion of your emergency fund you keep at home, I’d recommend just being reasonable.

If you’ve got $10,000 set aside for emergencies, I’m OK with you keeping $5,000 at home in a quality safe.

I wouldn’t put all, or even most of it, in a safe, though.

Again, just make sure your homeowners policy covers anything you might put in there. A strong, fireproof safe is a must!

— Dave

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