...answers your personal finance questions.

By SARAH TILTON

I've heard about brokerage firms collapsing and customers losing their money and their stocks. How do I make sure I don't become another headline?
--High-strung in Hong Kong

A In Hong Kong, the government-mandated Unified Exchange Compensation Fund is designed to compensate investors for losses resulting from a default by a stock exchange member. But the amount payable on valid claims is determined by the Council of the Stock Exchange of Hong Kong (SEHK). In one recent case, SEHK awarded clients of C.A. Pacific Securities, a small failed brokerage firm, up to U.S.$19,379 each, which was equal to only 81% of full reimbursement based on company records, according to SEHK. The lesson in this and similar cases: Avoid little-known brokerages, which are more apt to fold than established ones.

That advice is even more critical in other Asian markets, where there is no insurance on brokerage accounts. "It's better to pay a little more and use a larger firm with stability and experience," says Allan Yu, an accountant in Hong Kong. According to Josephine Lam, head of Asian business development at brokerage giant Charles Schwab in Hong Kong, each Schwab account is insured for up to $100 million.

Q Many of my friends are being headhunted these days. I feel I have similar experience and qualifications, though I never receive any calls. How do I get on these headhunters' lists?
--Waiting by the Phone

A Headhunting is all about networking. Many potential job candidates get unsolicited calls after friends or colleagues recommend them to headhunters researching positions. But if your phone hasn't been ringing you can approach executive placement firms yourself rather than waiting to be discovered.

While search firms do most of the initial calling, there is no penalty, cost or obligation for contacting them first. Bear in mind, though, what one headhunter says: "Usually your track record speaks for itself. If you are a producer in sales or marketing, say, the word gets out. Ninety-nine percent of the time people who send in their resumes and say they are looking for certain positions are not right for the job they describe. But people with strong resumes should still send them. Something may pop up if the firm goes through its database and finds you fit the criteria for a specific job. There is always a market for good candidates."

Q My fiance just bought me a diamond engagement ring. I have renter's insurance, but should I get separate insurance for the ring?
--To Buy or Not to Buy

A You need to re-read your insurance policy very carefully and then call your insurance agent to confirm whether or not your policy already covers the ring. Often, standard renter's insurance covers household items for current market value up to a limit described in the policy. For example, your individual policy might cover jewelry for up to $1,200 per item. Therefore, if your ring cost $500, it would be covered by your existing policy. But if the ring cost $5,000 you may want to take out a separate policy to make up the difference.

Also, ask your insurance company if your policy has a "worldwide extension" that covers your ring if it is lost or stolen outside your home. Worldwide extensions also have limits, so your insurance agent may recommend additional coverage.

Before you buy any extra insurance, compare the long-term cost of the additional premium to the value of the ring and any other personal property you may want covered. Paying a high premium for the next 50 years could add up to many times the replacement cost of the ring.

Finally, if you decide to take out more coverage specifically for the ring, be prepared to provide the insurance company with a professional appraisal or other supporting documents like the original receipt to prove that you own the ring and that it's not cubic zirconium.