4. You own a house worth $400,000 OJI H river. If the river floods moderately. the house will be corn•

pletely destroyed, This happens about Once every 50 years. If you build a seawall, the river would have to nood heavily to destroy your house, which only happens about once ever-v 200 years. What would be the annual premium tor an insurance policy that Offers full insurance? For a policy that only pays 75% of the home value, what are your expected costs with and without a seawall? Do the different policies provide an incentive to be safer to build the seawall)?