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 $($see Addendum C$),$ excluding the $$2,000$ diamond wedding band set. They have elected not to get any further liability or other specialized coverage at this time. Currently, their home has increased in value by $$15,000$ 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 $$6,000$ Gross income $($Jamie Lee$)$ $$67,000$

Savings account $$23,900$ Net income after taxes $($Jamie Lee$)$ $$50,250$

Emergency fund savings account $$22,200$ Gross income $($Ross$)$ $$92,000$

IRA balance $$27,700$ Net income after taxes $($Ross$)$ $$78,200$

Car $($Jamie Lee$)$ $$11,700$ Monthly Expenses:

Car $($Ross$)$ $$19,700$ Mortgage $$1,480$

Liabilities: Property taxes and insurance $$670$

Student loan balance $$0$ Utilities $$130$

Credit card balance $$2,000$ Food $$305$

Car loans $$7,700$ Gas$/$maintenance $$215$

Original purchase price of home $$305,000$ Credit card payment $$335$

Car loan payment $$306$

Entertainment $$385$Real Property $($not applicable to renters$)$

Current replacement value of home

Personal Property

Estimated value of appliances, furniture, clothing, and other household items

$($conduct an inventory$)$

Type of coverage for personal property

Additional coverage for items with limits on standard personal coverage such as jewelry, firearms,

silverware, and photographic, electronic, and computer equipment

Diamond wedding band set

Personal Liability

Amount of additional personal liability coverage desired for possible personal injury

claims

Specialized Coverages

If appropriate, investigate flood or earthquake coverage excluded from home

insurance policies

Total Property Insurance Needed