The Willingness to Pay for Flood Insurance

Noelwah Netusil, Carolyn Kousky, Shulav Neupane, Will Daniel and Howard Kunreuther

Land Economics, 2021, vol. 97, issue 1, 17-38

Abstract: Flooding is the natural disaster that causes the most damage. Postflood, many families are not insured and do not have sufficient savings for rebuilding, and governmental aid can be limited. We undertake, using a stated preference survey, the first willingness-to-pay (WTP) elicitation for flood insurance in the United States. WTP increases with modeled flood risk and flood-risk perceptions. WTP for residents in our study area’s 100-year floodplain is 47% to 59% of the median flood insurance premium, which suggests the need for financial assistance for families who are at risk of flood damage and are unable to afford risk-based premiums.

JEL-codes: Q54 Q58 (search for similar items in EconPapers)
Date: 2021
Note: DOI: 10.3368/wple.97.1.110819-0160R1
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:97:y:2021:i:1:p:17-38

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