RT Journal Article
SR Electronic
T1 The Willingness to Pay for Flood Insurance
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 17
OP 38
DO 10.3368/le.97.1.110819-0160R1
VO 97
IS 1
A1 Netusil, Noelwah R.
A1 Kousky, Carolyn
A1 Neupane, Shulav
A1 Daniel, Will
A1 Kunreuther, Howard
YR 2021
UL http://le.uwpress.org/content/97/1/17.abstract
AB 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.