Willingness to Pay for Multi-Peril Hazard Insurance

48 Pages Posted: 30 Jul 2020

See all articles by Craig E. Landry

Craig E. Landry

UGA Ag & Applied Economics

Sarah Anderson

University of Georgia

Elena Krasovskaia

University of Georgia - Department of Agricultural & Applied Economics

Dylan Turner

University of Georgia - Department of Agricultural & Applied Economics

Date Written: July 28, 2020

Abstract

Increasing the number of insured assets in high risk areas can help reduce the need for federal disaster aid and help communities rebuild quicker following a disaster event. Offering a bundled multi-peril homeowners insurance product may be one way to do this. Using individual level survey data, we assess demand for a hypothetical multi-peril insurance product and estimate a mean annual willingness to pay of \$4396.93. Both quantitative and qualitative analysis point to cost being the primary concern for adoption, however, reducing cognitive burden and uncertainty in the claims filing process appear to be important factors that appeal to homeowners.

Keywords: natural hazards, flood insurance, multi-peril insurance

JEL Classification: Q54, G22

Suggested Citation

Landry, Craig and Anderson, Sarah and Krasovskaia, Elena and Turner, Dylan, Willingness to Pay for Multi-Peril Hazard Insurance (July 28, 2020). Available at SSRN: https://ssrn.com/abstract=3662668 or http://dx.doi.org/10.2139/ssrn.3662668

Craig Landry (Contact Author)

UGA Ag & Applied Economics ( email )

Athens, GA 30602-7509
United States

Sarah Anderson

University of Georgia ( email )

Athens, GA 30602-6254
United States

Elena Krasovskaia

University of Georgia - Department of Agricultural & Applied Economics ( email )

Athens, GA 30602-7509
United States

Dylan Turner

University of Georgia - Department of Agricultural & Applied Economics ( email )

Athens, GA 30602-7509
United States

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