Why should you be reluctant to accept a 300 payment from, Basic Computer Science

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Why should you be reluctant to accept a 300 payment from

Fire insurance. Insurance companies collect annual payments from homeowners in exchange for paying to rebuild houses that burn down.

a) Why should you be reluctant to accept a $300 payment from your neighbor to replace his house should it burn down during the coming year?

b) Why can the insurance company make that offer?

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