What insurance company charge for policy to break even

Reference no: EM13112272

A customer for the home insurance policy owns a $200,000 home. Probability is 0.1% that home will be totally destroyed by fire, and probability is 0.5% that home will suffer the 50% loss due to fire. If we ignore all other partial losses, what premium must insurance company charge for policy just to break even?

Reference no: EM13112272

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