$$2,200$ and a security deposit equal to two months of rent.$$Since they want to be protected against the possible loss of their possessions, they will purchase a renters$$ policy of $$200$ every six months, while a more comprehensive homeowners$$ policy will cost $0\mathrm{.}5\%$ of the home$$s value per year.$$Money used to fund the house$$s security deposit could otherwise be invested to earn $5\%$ per year after taxes. Funds expended for a home$$s down payment and closing costs also incur an opportunity cost.