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 $12,000 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	$4,300		Gross income (Jamie Lee)	$50,000
Savings account	$22,200		Net income after taxes (Jamie Lee)	$37,500
Emergency fund savings account	$20,500		Gross income (Ross)	$75,000
IRA balance	$26,000		Net income after taxes (Ross)	$64,000
Car (Jamie Lee)	$10,000		Monthly Expenses:
Car (Ross)	$18,000		Mortgage	$1,225
Liabilities:			Property taxes and insurance	$500
Student loan balance	$0		Utilities	$195
Credit card balance	$2,000		Food	$400
Car loans	$6,000		Gas/maintenance	$275
			Credit card payment	$250
Original purchase price of home	$273,000		Car loan payment	$289
			Entertainment	$300

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) Round up to nearest $1,000 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 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) Round up to nearest $1,000 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