A homeowner is considering buying a one-year fire insurance policy. They are told that there is a 1.3% chance that their house their house will burn down within the year, and it will cost $100,000.00 to rebuild the house. They find a one-year full-coverage fire insurance policy for $1,000.00. What is the expected value of this policy for the insurance company? Not quite. S What is the expected value of this policy for the homeowner? Preview TT a ab