Upon graduating from college, your parents host a graduation party at their house for you. 30 of your friends attend along with several family members. At the end of the party everyone is leaving the house.

As the last guest leaves, you thank them for attending and close the door. 2 minutes later there is a loud knock on the front door.

You open the door and see one of your trusted friends who is very upset. She tells you that after getting into her car she realized her $8,000 Rolex watch was missing.

You, your friend and your family members search the house, front yard and your friend's pocketbook, pockets and her car to no avail - the watch cannot be located.

1) Should you call the police?

2) Is this apparent loss covered by the parents' home owner's insurance?

3) If not, what insurance might cover this loss?

-Imagine that you are relaxing on your sofa on a Saturday afternoon and the mail arrives.

You parse through the mail and find a letter from your home owner's insurance company. Upon opening the letter you read that the insurer indicates that they will not renew your home owner's policy unless you have railings installed on your front brick and bluestone stairs.

You gaze out the window confirming that some neighbors have these railings while most do not. Such railings could cost upwards of $1,500 to install and at the present time your budget does not have sufficient funds to cover the cost. Nor do you have a credit card available to cover the cost of the railings.

What steps would you take to address this stiuation?