A homeowner is considering buying a one-year fire insurance policy. They are told that there is a 0.6% chance that their house their house will burn down within the year, and it will cost $120,000.00 to rebuild the house. They find a one-year full-coverage fire insurance policy for $1,200.00. What is the expected value of this policy for the insurance company? Preview $ 450 $ 450 Not quite. Try again. What is the expected value of this policy for the homeowner? Preview $ 450 Not quite. Try again.