Floods and homeowners' financial resilience: Survey-based evidence from the Netherlands

Dorien de Leeuw and David-Jan Jansen
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Dorien de Leeuw: De Nederlandsche Bank
David-Jan Jansen: Vrije Universiteit Amsterdam

No 26-029/IV, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: We study homeowners’ awareness and financial resilience in the face of flood risk. Using three surveys among Dutch households, we compare owners of at-risk properties to a control sample of owners living outside a potential flood zone. While the former start exhibiting greater awareness of flood risk, this awareness is not specifically reflected in financial resilience. First, we find no significant differences in terms of net financial wealth or savings. Second, the mortgages that finance the properties have comparable loan-to-value ratios, both at origination and over time. The findings on resilience may reflect a high degree of trust in flood protection. The absence of insurance coverage combined with expected ex post government support may also be a factor.

Keywords: homeownership; insurance protection gaps; protection motivation theory; financial resilience (search for similar items in EconPapers)
JEL-codes: D14 Q54 Q56 (search for similar items in EconPapers)
Date: 2026-06-05
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20260029

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