Mortgage Insurance Adoption in the Netherlands

36 Pages Posted: 4 Jun 2020

See all articles by Ruben Cox

Ruben Cox

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Remco C. J. Zwinkels

Vrije Universiteit Amsterdam; Tinbergen Institute

Date Written: Winter 2019


Individuals tend to underinsure on low probability, high consequence risks. Using a survey data set from a unique institutional context, we provide an assessment of the underinsurance puzzle by studying mortgage insurance adoption among Dutch homeowners. The results indicate that the demand for mortgage insurance is affected by risk exposure, type of mortgage lender, and the involvement of financial advisors. We document that wealthier and younger mortgagors are more likely to insure. However, locus of control, house price expectations, and precautionary savings are not related to insurance demand. Finally, we find evidence that borrower (over)confidence negatively affects the likelihood that insurance is bought.

Suggested Citation

Cox, Ruben and Zwinkels, Remco C.J., Mortgage Insurance Adoption in the Netherlands (Winter 2019). Real Estate Economics, Vol. 47, Issue 4, pp. 977-1012, 2019, Available at SSRN: or

Ruben Cox (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
+31 (0) 10 4088929 (Phone)

Remco C.J. Zwinkels

Vrije Universiteit Amsterdam ( email )

De Boelelaan 1105
Amsterdam, NH 1081 HV
+31205985220 (Phone)

HOME PAGE: http://

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA

HOME PAGE: http://

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics