RT Journal Article
SR Electronic
T1 Willingness to Pay for Multi-peril Hazard Insurance
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 797
OP 818
DO 10.3368/le.97.4.072820-0115R1
VO 97
IS 4
A1 Craig E. Landry
A1 Sarah Anderson
A1 Elena Krasovskaia
A1 Dylan Turner
YR 2021
UL http://le.uwpress.org/content/97/4/797.abstract
AB Increasing the number of insured assets in high-risk areas can help reduce the need for federal disaster aid and help communities rebuild quicker following a disaster event. Offering a bundled multi-peril homeowners’ insurance product may be one way to do this. Using individual-level survey data, we assess demand for a hypothetical multiperil insurance product and estimate a mean annual willingness to pay of $4,397. Both quantitative and qualitative analysis point to cost being the primary concern for adoption, however, reducing cognitive burden and uncertainty in the claims filing process appear to be important factors that appeal to homeowners.