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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 $11,000 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	$6,100		Gross income (Jamie Lee)	$68,000
Savings account	$24,000		Net income after taxes (Jamie Lee)	$51,000
Emergency fund savings account	$22,300		Gross income (Ross)	$93,000
IRA balance	$27,800		Net income after taxes (Ross)	$79,050
Car (Jamie Lee)	$11,800		Monthly Expenses:
Car (Ross)	$19,800		Mortgage	$1,495
Liabilities:			Property taxes and insurance	$680
Student loan balance	$0		Utilities	$135
Credit card balance	$2,000		Food	$310
Car loans	$7,800		Gas/maintenance	$220
			Credit card payment	$340
Original purchase price of home	$302,000		Car loan payment	$307
			Entertainment	$390

Current value of home
Estimated value of appliances, furniture, clothing and other household items
Type of coverage for personal property
additional coverage for items with limits of standard personal coverage such as jewelry firearms silverware and photographic electronic and computer equipment diamond wedding band set
Amount of additional personal liability coverage desired for possible personal injury
if appropriate investigate flood or earthquake coverage excluded from home insurance policies
total property insurance needed

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