Question 1, Homeowner's Insurance: Graham and Belinda Ulrich are planning to buy a $385,000 home. The home is located three kilometres from a river that occasionally overflows its banks after a heavy rain. They estimate that their personal property is worth $75,000 but they really are not sure. This includes the office and computer equipment that Belinda uses as a freelance writer and a $5,000 coin collection inherited from Grahams father. The Ulrichs net worth, including their current $220,000 home, is $500,000. The Ulrichs asked their insurance agent to find them the best coverage possible, taking advantage of all possible cost-savings measures. They do not want a lot of out-of-pocket expenses if their home or personal property is destroyed and they want insurance to keep pace with increasing building costs. What type of homeowners insurance policy is best for the Ulrichs? Explain. Should the Ulrichs buy flood insurance? How do they go about purchasing it? Should the couple buy an umbrella personal liability policy? Explain.