Flood Insurance Coverage in the Coastal Zone

28 Pages Posted: 20 May 2011

See all articles by Craig E. Landry

Craig E. Landry

UGA Ag & Applied Economics

Mohammad R. Jahan-Parvar

Board of Governors of the Federal Reserve System

Multiple version iconThere are 2 versions of this paper

Date Written: June 2011


We explore determinants of flood insurance demand in the coastal zone using micro-data for nine Southeastern counties. Overall estimates indicate price inelastic demand, though subsidized policyholders have greater coverage and are more price sensitive. Mortgage borrowers exhibit no greater coverage; only 12 percent in 100-year flood zone indicate flood insurance was required by their lender. Flood insurance demand is increasing in the levels of flood and erosion risk. We find a positive correlation between household income and coverage, but the effect is not monotonic. Community-level erosion hazard mitigation projects influence flood insurance coverage, with beach replenishment acting as a complement.

Suggested Citation

Landry, Craig and Jahan-Parvar, Mohammad R., Flood Insurance Coverage in the Coastal Zone (June 2011). Journal of Risk and Insurance, Vol. 78, Issue 2, pp. 361-388, 2011, Available at SSRN: https://ssrn.com/abstract=1841262 or http://dx.doi.org/10.1111/j.1539-6975.2010.01380.x

Craig Landry

UGA Ag & Applied Economics ( email )

Athens, GA 30602-7509
United States

Mohammad R. Jahan-Parvar (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

HOME PAGE: http://sites.google.com/site/mrjahan/

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