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 "O" for any unused categories. Current Financial Situation Assets: Income! Checking account $5,300 Gross income (Jamie Lee) $60,000 Savings account $23,200 Net income after taxes (Jamie Lee) $45,000 Emergency fund savings account TRA balance $21,500 Gross income (Ross) $85,000 $27,000 Net income after taxes (Ross) $72,250 Car (Jamie Lee) $11,000 Monthly Expenses: Car (Rosa) $19,000 Mortgage $1,375 Liabilities: $600 Property taxes and insurance Utilities Student loan balance $245 50 $2,000 Food Credit card balance $450 Car loans $7,000 Gas/maintenance $325 Original purchase price of home $295,000 credit card payment $300 $299 Car loan payment Entertainment $350 Home Inventory with Estimated Replacement Values - Calculate the total replacement cost for household. Closets/Hallway: Value Attic: Value Bathrooms: $85.00 Linens, towels, shower curtain Tenor Saxaphone cleaner Vacuum $450.00 $90.00 $600.00 4 pc. Luggage set Holiday decorations Winter Coats $200.00 Rugs $300.00 Electric Toothbrush Table/Mirror Off-season clothing $350.00 Personal Belongings: Value Bedrooms: Jewelry $4,000.00 Clothing (excluding wedding rings) Master Bedroom Furniture Guest Bedroom Furniture Value Family Room: $1,500.00 Sofa Set $1,200.00 Lamps $300.00 Nursery Eurniture (twins) $2,000.00 5 6 Garage: Value Value Electronics: Kitchen/Dining: Table/chairs Tools $250.00 Refrigerator $750.00 Laptop Computer Golf $150.00 Dishwasher Microwave $1,400.00 Computer Lawn Tools $250.00 Toaster Coffee $450.00 $120.00 $200.00 Maker $50.00 $30.00 $150.00 Lawn mower Bicycles Clubs 8 10 Total value: TV F Value $350.00 $40.00 $50.00 Value $1,800.00 $2,000.00 $200.00 Value Tablet $800.00 $500.00 G 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 "O" for any unused categories. Current Financial Situation Assets: Income! Checking account $5,300 Gross income (Jamie Lee) $60,000 Savings account $23,200 Net income after taxes (Jamie Lee) $45,000 Emergency fund savings account TRA balance $21,500 Gross income (Ross) $85,000 $27,000 Net income after taxes (Ross) $72,250 Car (Jamie Lee) $11,000 Monthly Expenses: Car (Rosa) $19,000 Mortgage $1,375 Liabilities: $600 Property taxes and insurance Utilities Student loan balance $245 50 $2,000 Food Credit card balance $450 Car loans $7,000 Gas/maintenance $325 Original purchase price of home $295,000 credit card payment $300 $299 Car loan payment Entertainment $350 Home Inventory with Estimated Replacement Values - Calculate the total replacement cost for household. Closets/Hallway: Value Attic: Value Bathrooms: $85.00 Linens, towels, shower curtain Tenor Saxaphone cleaner Vacuum $450.00 $90.00 $600.00 4 pc. Luggage set Holiday decorations Winter Coats $200.00 Rugs $300.00 Electric Toothbrush Table/Mirror Off-season clothing $350.00 Personal Belongings: Value Bedrooms: Jewelry $4,000.00 Clothing (excluding wedding rings) Master Bedroom Furniture Guest Bedroom Furniture Value Family Room: $1,500.00 Sofa Set $1,200.00 Lamps $300.00 Nursery Eurniture (twins) $2,000.00 5 6 Garage: Value Value Electronics: Kitchen/Dining: Table/chairs Tools $250.00 Refrigerator $750.00 Laptop Computer Golf $150.00 Dishwasher Microwave $1,400.00 Computer Lawn Tools $250.00 Toaster Coffee $450.00 $120.00 $200.00 Maker $50.00 $30.00 $150.00 Lawn mower Bicycles Clubs 8 10 Total value: TV F Value $350.00 $40.00 $50.00 Value $1,800.00 $2,000.00 $200.00 Value Tablet $800.00 $500.00 G