4. Jamie and Ross decided to conduct a checkup on their homeowner’s insurance policy. They noticed that they had omitted covering Jamie Lee’s diamond wedding band set from their policy. What if it got lost or stolen? It was a major purchase, and besides the emotional value, the cost to replace the diamond jewelry would be very high. What type of policy should Jamie Lee and Ross consider to cover the diamond wedding rings?Jamie Lee and Ross have had several milestones in the past year. They got married, recently purchased their first home, and now have twins on the way!

Jamie Lee and Ross have to seriously consider their insurance needs. Since they have family, a home, and, now, babies on the way, they need to develop a risk management plan to help them should an unexpected event arise.

Current Financial Situation Assets (Jamie Lee and Ross combined):

Checking account, $4,300 Savings account, $22,200 Emergency fund savings account, $20,500 IRA balance, $26,000 Cars, $10,000 (Jamie Lee) and $18,000 (Ross)

Liabilities (Jamie Lee and Ross combined):

Student loan balance, $0 Credit card balance, $2,000 Car loans, $6,000 Income:

Jamie Lee, $50,000 gross income ($37,500 net income after taxes)

Ross, $75,000 gross income ($64,000 net income after taxes)

Monthly Expenses (Jamie Lee and Ross combined):

Mortgage, $1,252 Property taxes and insurance, $500 Utilities, $195 Food, $400 Gas/Maintenance, $275 Credit card payment, $250 Car loan payment, $289 Entertainment, $300