Gold prices continue to smash through records, rising above $5,500 an ounce this week with no sign of stopping. If you’re not buying gold bars at Costco or investing in a gold ETF, you might think this rally doesn’t affect you much.

Your jewelry box begs to differ. If something happens to a valuable ring, bracelet or other piece of jewelry, the skyrocketing prices of precious metals makes replacing it a lot more expensive — even if you have homeowners or renters insurance.

While homeowners and renters insurance policies nominally offer protection for your jewelry, there are some significant caveats. A typical policy will only pay out if jewelry is stolen or damaged in a so-called covered peril, such as a fire, and the maximum payout is generally capped at $1,000 or $1,500 per item. Filing a claim doesn't make economic sense, especially for the growing number of homeowners increasing their deductibles to $5,000 or even $10,000 to mitigate big premium hikes. Plus, typical coverage won't cover replacing your most expensive pieces; a typical engagement ring, for example, contains about a quarter-ounce of pure gold, which means that a standard policy cap wouldn’t even cover the cost of the raw gold to replace it.

If you want better coverage for a valuable piece like an engagement ring, experts recommend adding a rider to your homeowners or renters insurance or taking out a standalone policy specifically to cover one or more pieces of jewelry, which can offer higher coverage as well as protection against loss.

Even if you've taken this extra step, though, experts advise checking your coverage to make sure that you’re still adequately protected. According to Sherry Smith, a vice president at Edge Retail Academy, a consulting and coaching firm for jewelry stores, the sharp rise in gold prices could leave you exposed.

“Higher gold prices have widened the gap between insured values and actual replacement costs for fine jewelry. Many customers remain underinsured due to outdated appraisals, creating financial risk,” she tells Money via email.

Silver jewelry enthusiasts also face the prospect of pricier replacements; the price of silver jumped more than 200% in the past year, riding a trend that has seen precious metals appreciate sharply in recent months.

How to insure your jewelry

The first step is to get your jewelry appraised. Experts recommend getting valuables like jewelry appraised annually, although many people don’t. Even if you do follow this advice, the recent spike in gold, silver and platinum prices means that a year-old appraisal wouldn’t capture the current replacement value of your piece.

Once you know how much your valuables are worth, you can determine the best strategy for protecting them. The least expensive route is to raise the limit on your current homeowners or renters policy, although this option has some significant limitations: You can expect to still have a relatively low cap — say, $2,000 instead of $1,000 — and you'll still be limited to claims resulting from covered perils, like theft or fire. (If a ring slips off your finger, you're out of luck.)

Depending on your particular homeowners policy, you might be able to attach a rider (also referred to as an endorsement). Riders offer protection for specific valuables like jewelry, with coverage at a higher level than you could get through your regular homeowners policy. Although policy details vary, a rider also generally provides more comprehensive coverage — such as protecting you from loss as well as theft. The drawback, though, is that filing a claim could make your homeowners insurance premiums increase the next time you renew. (This is also a consideration if you just raise your coverage limit.)

The most comprehensive option is a separate, standalone policy for jewelry. This covers you if your jewelry is lost or stolen, including while traveling overseas, and offers higher limits that will pay out the full replacement value of your gold jewelry. Although more expensive — if you want to insure an engagement ring, you can expect to pay 1% to 2% of the appraised value of the ring per year — this option gives you a higher level of coverage. Also, filing a claim is unlikely to affect your home insurance premiums, making standalone insurance especially appealing if you live in an area at high risk of natural disasters.

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