Case study 1: Home and Automobile Insurance Newlyweds Zakiah and Razali have had several milestones in the past year. They are newlyweds, recently purchased their first home and now have twins on the way! Zakiah and Razali have to seriously consider their insurance needs. A 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 (Zakiah and Razali combined): Checking account: RM4,300 Savings Account: RM22,200 Emergency Fund savings account: RM20,500 Retirement Account balance: RM26,000 Car: RM10,000 (Zakiah) and RM18,000 (Razali) Liabilities (Zakiah and Razali combined): Student loan balance: RMO Credit Card Balance: RM2,000 Car Loans: RM6,000 Income: Zakiah: RM50,000 gross income (RM37,500 net income after taxes) Razali: RM75,000 gross income (RM64,000 net income after taxes) Monthly Expenses (combined): Mortgage: RM1,252 Property Taxes and Insurance: RM500 Utilities: RM195 Food: RM400 Gas/Maintenance: RM275 Credit Card Payment: RM250 Car Loan Payment: RM289 Entertainment: RM300 1. What type of policy should Zakiah and Razali consider covering the diamond wedding rings? 2. Mr. Ferrell, Zakiah and Razali' insurance agent, suggested a flood insurance policy in addition to their regular homeowner's policy. Zakiah and Razali looked quizzically at the agent, as they do not live within two miles of a body of water. 3. What is the basis for Mr. Ferrell's claim for the necessity of the flood policy? 4. Considering the value of Zakiah and Razali' automobiles, what type of automobile insurance coverage would you suggest for them? 5. What financial strategy would you suggest to Zakiah and Razali to enable them to save money on their insurance premiums