PFIN 5th Edition by Randall Billingsley,Lawrence Gitman,Michael Joehnk

Exercise 3

Need for renter's insurance. Miles and Nina Baron both graduate students, moved into an apartment near the university. Nina wants to buy renter's insurance, but Miles thinks they don't need it because their furniture isn't worth much. Nina points out that, among other things, they have some expensive computer and stereo equipment. To help the Barons resolve their dilemma, suggest a plan for deciding how much insurance to buy, and give them some ideas for finding a policy.