Edward paid an annual premium of $2,000 in total coverage for his homeowner's insurance, including $250,000 in damage coverage and $250,000 in liability coverage. six years into his policy, a tree fell on edward's home and caused $50,000 worth of damage. edward's insurance company paid the claim. did the cost of the annual premiums outweigh the benefit of transferring the risk to the insurance company?

Respuesta :

No, the cost of the annual premium for six years was less than the accident claims.

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