Improving Household and Community Disaster Recovery: Evidence on the Role of Insurance

52 Pages Posted: 27 Feb 2023 Last revised: 12 Apr 2023

See all articles by Xuesong You

Xuesong You

Federal Home Loan Mortgage Corporation (FHLMC)

Carolyn Kousky

Environmental Defense Fund

Date Written: February 17, 2023

Abstract

We study the role of insurance in improving household and community disaster recovery. Harnessing unique survey data of residents impacted by four land-falling hurricanes in the U.S., we find that insured households are less likely to experience high financial burdens in both the short and longer-run post-disaster and are less likely to have unmet funding needs. Insurance also provides spillover benefits for the local economy. Post-disaster visitation rates to many local businesses increase with flood insurance payouts. Despite this, motivating purchase of disaster insurance remains a challenge among low-income households who are less likely to report seeing insurance as useful.

Suggested Citation

You, Xuesong and Kousky, Carolyn, Improving Household and Community Disaster Recovery: Evidence on the Role of Insurance (February 17, 2023). Available at SSRN: https://ssrn.com/abstract=4365715 or http://dx.doi.org/10.2139/ssrn.4365715

Xuesong You (Contact Author)

Federal Home Loan Mortgage Corporation (FHLMC) ( email )

8200 Jones Branch Road
McLean, VA 22101
United States

Carolyn Kousky

Environmental Defense Fund ( email )

1875 Connecticut ave
257 Park Avenue South
Washington, DC 20009
United States

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