Newlyweds Jamie Lee and Ross have had several milestones in the past year. They are newly married, recently purchased their first home, and now have twins on the way!

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

Jamie Lee and Ross created a Household Inventory (seeAddendum C), excluding the $2,000 diamond wedding band set. They have elected not to get any further liability or other specialized coverage at this time. Currently, their home has increased in value by $13,000 since they purchased it five years ago. If something unfortunate should happen, they want to ensure that they are able to rebuild their home using the most current costs.

Use this information to complete the table below and determine the total amount of property insurance coverage they will need. Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories.

Current Financial Situation

Assets:Income:Checking account$4,900Gross income (Jamie Lee)$56,000Savings account$22,800Net income after taxes (Jamie Lee)$42,000Emergency fund savings account$21,100Gross income (Ross)$81,000IRA balance$26,600Net income after taxes (Ross)$68,850Car (Jamie Lee)$10,600Monthly Expenses:Car (Ross)$18,600Mortgage$1,315Liabilities:Property taxes and insurance$560Student loan balance$0Utilities$225Credit card balance$2,000Food$430Car loans$6,600Gas/maintenance$305Credit card payment$280Original purchase price of home$292,000Car loan payment$295Entertainment$330