Updated: 30 Oct 2009

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Introduction

How to keep track of your important documents.

Disaster can strike suddenly - are your insurance papers handy if you need to flee the house? Or could you find the warranty when the washing machine goes on strike? Your plasma TV has been stolen - can you prove you owned one? 

We explain how to safely store your documents in paper and electronic form. 

Keeping track

It helps to group your records into categories.

• Personal: Birth certificate, marriage certificate, passport, diplomas and certificates.
• Financial: Ownership papers for your home and car, insurance policies, investment certificates, loan documents, warranties plus proof of purchase, photographs of valuable jewellery and artwork (for identification in case of theft).
• Legal: Will, power of attorney, trust documents, divorce papers, child-support arrangements.

If an important document is lost or stolen, you should notify the issuer straight away.

Having sorted your records and documents, you need to decide how and where to store them. Physical storage is the most obvious option but records and photos can now be digitised and stored electronically.
 

Physical storage

At home

If you don’t have many documents you can store them in a concertina file – it’s easy to pick up if you need to leave home in a hurry.

If you have a lot of papers, keep the most important ones in a getaway kit (bag or folder) in a safe place. What’s most important? Civil Defence suggests your birth and marriage certificates, passports, insurance policies and family photos.

Your getaway kit could also include a USB stick or a CD of digitally stored documents and photos.

Lawyers and the Public Trust keep originals of documents that people have drawn up with them – such as wills, enduring power of attorney, and trusts. Your bank holds the original of your mortgage document or loan.

Safe-deposit

Bank safe-deposit boxes have been the traditional place to keep the family jewels and important papers, but banks are stopping or reducing this service.

We contacted all the major banks: only Westpac, ANZ and National Bank said that most of their branches offered “safe custody” storage in an envelope or small box. The annual fees for the service are between $14 for a small envelope and $100 for a box. These three banks also offer safe-deposit boxes in vault facilities in Auckland; and the National Bank in Wellington as well.

Larger cities have private companies that rent safe-deposit boxes for an annual fee of between $140 and $550, depending on the size of the box.

Tip: Make a friend or relative your “co-signer”. This means they can open the box if you’re incapacitated.

Back-up

You need several layers of protection for your important documents – you don’t want to lose them all if there’s a fire or flood. Even a leaky pipe can cause problems if you’ve been storing your papers in a shoebox in the basement.

Keep a copy of all important information in a separate location and tell a trusted friend or family member where it’s kept. Remember to update this information if your circumstances change. 

Electronic storage

On your computer

Summary information such as numbers and expiry dates of important documents (but not passwords or PINs) can be stored in a file on your computer.

Or you can go further and digitally scan certificates and legal documents. You can save these – and family photographs – on a USB stick or a CD and then keep this in your getaway kit.

Tip: Update your records whenever there are any changes (for example when you revise your will or buy or sell shares).

Being secure

Make sure you have adequate security on your computer – and protect your information with at least a password. For example, you might have stored a summary of your investments with account numbers and your client ID in a Word document or Excel spreadsheet: simply click Tools/Options/Security to set a password for opening the document.

Encryption offers a higher level of protection. There are free encryption tools available on the web, but less technically savvy users would be wise to choose commercial products. Protection is especially important with USB sticks: they’re easy to carry around and lose – and can be read by any computer with a USB port.

You’ll need to remember your password to access your files or encrypted data. If you sell your computer you’ll have to clear the hard drive to ensure there’s no personal information left on it.

Back-up

If your computer crashes or is physically damaged you won’t be able to access your information. Storing information on a secure website means you can access it from anywhere in the world. ASB customers, for example, can log into its Online Vault and store personal information, bank, insurance and medical details and important contacts. The information is encrypted and can only be seen by the person who loaded it.

There are online services that specialise in secure document storage – you can store documents and photos online, share them with anybody who has your password and backup your data. But systems like this are targets for hackers. Always read the terms and conditions, especially the privacy policy. What happens to your information if the company goes out of business or you don’t pay the monthly fee?

Tip: You might not have access to a computer in an emergency. Think about storing a USB stick or CD containing your vital records with a trusted friend or family member who lives out of the area.

More information

• Computer security - www.netsafe.org.nz

What to dump

• Tax records: People who don’t have to file a tax return only need to keep any records (such as details of wages received) for 12 months after the end of the income year. Businesses and people who earn their income from sources other than wages or a salary must keep their records for seven years.
• Bank and credit card statements: Check statements carefully as soon as they arrive. After that it’s up to you whether to keep them. Your bank keeps your records for up to seven years – if you need an old statement you can get a copy (but there may be a fee).

... and what not to dump

• Warranties: Don’t throw out a warranty when it expires – if the appliance doesn’t last a reasonable length of time (see our Appliance life expectancy report), you may be able to claim a repair or refund under the Consumer Guarantees Act.
  
  When you buy an appliance attach the receipt to the warranty so you know when you bought it and have proof of purchase.
• Important warning: Don’t throw out old documents with the household rubbish or put them in the recycling bin. Shred or burn any documents that carry your name, address, account number or any other information that could identify you.

More information

•  Identity theft: www.consumeraffairs.govt.nz

 

Report by Bev Frederikson.