My husband gave me a gorgeous diamond and sapphire ring for our 25th wedding anniversary. Although I don't know what he paid for it (he wouldn't tell!), I know I need to "schedule" it on my insurance policy so it will be properly covered. But how do I know how much to insure it for? -- Diamond Lil

Dear Lil:

Sounds like your husband's a real gem! You are right to protect his generous gift by "scheduling" it -- adding a special rider to your homeowners policy to "beef up" your coverage. After all, most homeowners policies have a limit (usually about $2,000) for which they will reimburse you if your jewellery is stolen. In addition, you would have to pay a deductible on that amount, whereas there is usually no deductible for scheduled items.

As you have guessed, $2,000 (less the deductible) would likely not provide enough protection. But the only way to find out the true value of the ring is to have it appraised. A sales receipt will not suffice as proof of value, even if you could pry it from your husband! That would prove only how much he paid for the ring, and has no bearing on its actual value.

An appraisal, on the other hand, not only provides proof of value, but also a detailed description of the article, so if your ring is lost, stolen, or damaged, the insurer can replace it with one of like kind and quality. Remember, your jewellery is unique -- you can't simply browse through a catalogue and find an exact replica.

All appraisals are not alike either. To get an impartial estimate of your ring's value, find an independent appraisal firm that has no connection to buying or selling the ring -- not the jewellery store where the ring was purchased.

The appraisal firm should also be accredited, which means it has met criteria set by the Canadian Jeweller's Institute. If you can't find an accredited firm in your local directory, contact the Canadian Jeweller's Association in Toronto for a list.

Because values change, you should have your appraisal updated every three to seven years. Your insurer will usually remind you when the time comes.

Of course, no amount of money can replace the sentimental value of your silver anniversary gift, so consider keeping your ring in a safety deposit box when you don't need to wear it -- that's the best policy of all!

Note: The preceding information is based on the Insurance Bureau of Canada's guideline wordings. Remember, policies vary, so when in doubt, consult your insurance representative.