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Mary and Shawn recently purchased their first home. They have obtained the basic homeowner insurance. Their insurance agent also recommend a flood insurance policy for

Mary and Shawn recently purchased their first home. They have obtained the basic homeowner insurance. Their insurance agent also recommend a flood insurance policy for their new home. However, after calculating the monthly income and budget, Mary and Shawn found the flood insurance was too expensive for them to afford. They decided to take the risk and not to buy the flood insurance. What type of risk management strategy was used in this case?

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