Valentine’s Day is the most romantic time of the year and the most popular day for marriage proposals. Although it’s hard to put a price on sentimental items, valuables such as diamond rings need to be properly insured against loss or theft; but sometimes your existing insurance may not provide enough coverage.

Each year, according to the U.S. Department of Justice, consumers spend $50 billion on jewelry, of which $1 billion is lost, stolen, or otherwise disappears. To make matters worse, the vast majority of those valuable articles are underinsured, which means that they can’t be adequately replaced.

“Many homeowners or renters insurance policies provide only a basic level of personal property coverage — often in the $1,000 to $1,500 range — for items such as jewelry and furs,” said Noel Edsall, Director of Product Development at MetLife Auto & Home. “That’s why people with higher-valued items should make certain that those valuables are appropriately protected.”

For a greater level of coverage, insurance companies offer Scheduled Personal Property (SPP), an endorsement to provide 100 percent of the “stated value” of valuable items, such as jewelry and furs, for a very small additional premium — often with no deductible. Most companies stipulate that reimbursement for a loss will not exceed the actual cash value of the item, or the cost to replace the item, as outlined in the policy. Some, however, offer extra peace of mind, by providing coverage on an “agreed value” basis. This means that, regardless of the actual cost to repair or replace the valuable, the company agrees to pay, in the event of a loss, an amount that has been agreed upon in advance.

Whether an item of jewelry is a recent gift, or a family heirloom, owners can ensure that it’s appropriately protected by taking the following steps:

Have your items appraised. Locate a professional appraiser and get a detailed description and value of the item — in writing. Then, talk to your insurance agent, and have him or her compare this appraisal against your jewelry coverage limits to determine whether you should secure Scheduled Personal Property coverage. Finally, store the appraisal in a safe place with other valuable papers. Even if the value increases over time, it’s helpful to have the description in writing.

Contact your agent or insurance provider whenever you acquire a valuable item. This person can assist you in making certain that this item is covered in the event of a loss.

“Refresh” appraisals every two or three years. Markets, such as those for diamond and silver, tend to fluctuate. Have items re-appraised, especially those with individual values of more than $2,500.

Create an inventory of all your personal possessions. Insurance companies often offer free personal property inventory forms, usually in both English and Spanish. Check with your agent and see if your insurer offers them.
Of course, jewelry is probably not the only valuable thing that you own. For information about insuring other major investments, go to www.lifeadvice.com and select “Major Purchases.” The Life Advice site contains a wealth of information that can help you make important decisions on major purchases from a new computer to a new home. Whatever you hold near and dear to your heart, however, the fact remains: By keeping your most important items adequately protected against the unforeseen, you can help keep romance blooming all year long.