Come Rain or Shine: Evidence on Flood Insurance Purchases in Florida

29 Pages Posted: 10 May 2010

See all articles by Erwann Michel-Kerjan

Erwann Michel-Kerjan

University of Pennsylvania - The Wharton School - Center for Risk Management

Carolyn Kousky

Resources for the Future

Abstract

This article provides a detailed analysis of the operation of the National Flood Insurance Program (NFIP) in Florida, which accounts for 40 percent of the NFIP portfolio. We study the demand for flood insurance with a data set of more than 7.5 million NFIP policies-in-force (the largest ever studied) for the years 2000–2005, as well as all NFIP claims filed in Florida. We answer four questions: What are the characteristics of the buyers of flood insurance? What types of contracts (deductibles and coverage levels) are purchased? What are the determinants of claims payments? How are prices determined and how much does NFIP insurance cost?

Suggested Citation

Michel-Kerjan, Erwann and Kousky, Carolyn, Come Rain or Shine: Evidence on Flood Insurance Purchases in Florida. Journal of Risk and Insurance, Vol. 77, Issue 2, pp. 369-397, June 2010. Available at SSRN: https://ssrn.com/abstract=1601003 or http://dx.doi.org/10.1111/j.1539-6975.2009.01349.x

Erwann Michel-Kerjan (Contact Author)

University of Pennsylvania - The Wharton School - Center for Risk Management ( email )

Jon M Huntsman Hall, Suite 500
3730 Walnut Street
Philadelphia, PA 19104-6365
United States

Carolyn Kousky

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

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