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Why Don’t Consumers Purchase Flood Insurance or Mitigate Flood Risk?

Michael LaCour‐Little et al.

Journal of Housing Research2024https://doi.org/10.1080/10527001.2024.2425230article
ABDC B
Weight
0.30

Abstract

We employed survey research to test the role of behavioral biases and consumer awareness in the demand for flood insurance and property risk mitigation. We relied on Meyer and Kunreuther (2017), who identified six biases—inertia, amnesia, myopia, simplification, optimism, and herding—as factors that impede rational decision-making regarding disaster preparedness. We tested proxies for these biases and find negative associations between those measures and household decisions. We also found that lack of awareness about flood risk and insurance options was an even stronger predictor of inaction than were our bias measures. This suggests that boosting consumer awareness may counter the influence of behavioral biases. We conclude by describing strategies that may increase consumer awareness and mitigate the behavioral biases examined.

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https://doi.org/https://doi.org/10.1080/10527001.2024.2425230

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@article{michael2024,
  title        = {{Why Don’t Consumers Purchase Flood Insurance or Mitigate Flood Risk?}},
  author       = {Michael LaCour‐Little et al.},
  journal      = {Journal of Housing Research},
  year         = {2024},
  doi          = {https://doi.org/https://doi.org/10.1080/10527001.2024.2425230},
}

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Why Don’t Consumers Purchase Flood Insurance or Mitigate Flood Risk?

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Evidence weight

0.30

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.