The existence of sufficient demand for insurance coverage against infrequent losses is important for the adequate function of insurance markets for natural disaster risks. This study investigates how characteristics of flood risk influence household flood insurance demand based on household surveys undertaken in Germany and the Netherlands. Our analyses confirm the hypothesis that willingness t...

In the United States, insurance against flood hazard (inland flooding or storm surge from hurricanes) has been provided mainly through the National Flood Insurance Program (NFIP) since 1968. The NFIP covers $1.23 trillion of assets today. This article provides the first analysis of flood insurance tenure ever undertaken: that is, the number of years that people keep their flood insurance policy...

Large-scale floods have the potential to generate substantial economic losses. Within Europe, governments have dealt with these losses in different ways, which may or may not have enhanced adaptability of their societies. In this research we develop a classification of insurance and compensation systems to deal with losses from floods. We suggest that, from the perspective of adaptive capacity ...

Benefiting from access to detailed data on the federally run National Flood Insurance Program for the entire state of Georgia, USA, we analyze residential flood insurance purchasing behavior in that state over more than three decades (1978–2010). The demand for flood insurance on an extensive margin, based on take-up rates, is found to be relatively price inelastic. Aligned with the behavioral ...

In March 2014, Congress passed legislation to halt discounted flood insurance premiums from increasing to full-risk levels. The rate hike was authorized two years earlier by the Biggert-Waters Act to address the National Flood Insurance Program’s structurally induced $24 billion debt. The recent developments highlight the tension between risk-based premium and affordability of flood insurance f...

The financial incentives offered by the risk-based pricing of insurance can stimulate policyholder adaptation to flood risk while potentially conflicting with affordability. We examine the trade-off between risk reduction and affordability in a model of public-private flood insurance in France and Germany estimating household flood adaptation decisions in response to financial insurance incenti...

This paper examines the characteristics that determine demand for micro-insurance when individuals have personal or observed experience with a rare weather event: the severe 2010 flooding in Pakistan. Using a sample of 384 individuals (192 in floodaffected and 192 non-affected villages matched using pre-flood propensity data), we combine post-flood survey data with behavioral experiments, to te...

Flood insurance, or the lack of it, is one of the factors that determine whether building on floodplains is sustainable. Availability of insurance can provide flood victims with the financial security to restore, maintain and sell their property but can also induce moral hazard increasing the eventual cost of flooding to the wider community. Flood cover in the UK has come under the spotlight in...

the multi-criteria decision making model is an important tool for decision making in water resource management. in this paper, the topsis model was used to rank seven flood management options in the gorganrood river flood management project, including conservation of natural condition, golestan reservoir management, levee construction, diversions-channel construction, flood forecasting and warn...

The National Flood Insurance Program does not currently cover damage strictly attributable to coastal erosion. This paper uses the results of a nationwide survey of coastal property owners to estimate the demand for such insurance. We find that there is significant demand at prices in the range of current flood insurance premiums. Demand is influenced in the hypothesized way by increased measur...