Economics at your fingertips  

Exclusions and the Demand for Property Insurance

Rodney Garratt () and John M. Marshall
Additional contact information
John M. Marshall: Department of Economics, University of California, Santa Barbara 93106, USA, e-mail:

The Geneva Risk and Insurance Review, 2000, vol. 25, issue 2, 131-139

Abstract: The paper examines property insurance contracts in which consumers choose the upper limit on coverage. Exclusions are of two types, and both reduce the demand for insurance of the included perils. A practical implication is that an insurer can raise the demand for fire insurance by offering an earthquake rider, and profit from the rider even when the premia are ceded in such a way that the rider does not raise profit directly. The results do not require assumptions about correlations between included and excluded losses, which is interesting because correlations are decisive in most of the other literature on background risk. The Geneva Papers on Risk and Insurance Theory (2000) 25, 131–139. doi:10.1023/A:1008710311509

Date: 2000
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Link to full text PDF (application/pdf) Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Exclusions and the Demand for Property Insurance (1999) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

The Geneva Risk and Insurance Review is currently edited by Michael Hoy and Nicolas Treich

More articles in The Geneva Risk and Insurance Review from Palgrave Macmillan, International Association for the Study of Insurance Economics (The Geneva Association) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2020-05-01
Handle: RePEc:pal:genrir:v:25:y:2000:i:2:p:131-139