TABLE 2

Probit Model Results of the Relationship between Variables and Insurance Coverage for the United States

Risk Reducing Behavioral VariableHomeowners Insurance Marginal Effects (1)Flood Insurance Marginal Effects (2)
Has preparation0.231*** (0.047)0.118** (0.042)
Has window protection0.042** (0.0186)0.111*** (0.027)
Has conducted risk reduction0.023 (0.021)0.122*** (0.031)
Has evacuation plans−0.051** (0.022)0.005 (0.028)
Safety0.000 (0.000)0.000 (0.000)
100-year floodplain0.011 (0.022)0.213*** (0.032)
Distance to coast0.017** (0.008)−0.013 (0.009)
Experienced damage0.053*** (0.018)0.083*** (0.026)
Hurricane Irene−0.084*** (0.021)−0.017 (0.028)
Hurricane Isaac−0.057* (0.034)0.198*** (0.041)
Constant0.213 (0.203)−1.346*** (0.204)
N1,6101,610
Log-likelihood−630.60−869.73
Likelihood ratio χ2 (prob > χ2)98.18*** [0.00]268.05*** [0.00]
Pseudo R20.070.13
  • Note: Numbers in parentheses are standard errors. Values for the constant are not the marginal effect but the coefficient estimate from the probit model. Numbers in square brackets are p-values.

  • *, **, *** Statistical significance at the 10%, 5%, and 1% levels, respectively.