Should flood insurance be mandatory? Insights in the wake of the 1997 New Year’s Day flood in Reno–Sparks, Nevada

Blanchard-Boehm, R. Denise; Berry, Kate A.; Showalter, Pamela S.

doi:10.1016/s0143-6228(01)00009-1

Cited by 49 publications

(42 citation statements)

References 11 publications

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“…We also argue here that if the homeowners are willing to take additional risk by paying a premium that is more than actuarially fair and could exceed expected loss, then their decision to buy flood insurance may be influenced by loss aversion because they emphasise their expected loss more than their expected gains. This result is consistent with the findings of Smith (1968), MacDonald et al (1987), Browne and Hoyt (2000), Dixon et al (2006), Kunreuther et al (1978), Palm (1981), Lamond et al (2009), andBlanchard-Boehm et al (2001).…”

Section: U G Aliagha Et Al: Factors Affecting Flood Insurance Purcsupporting

confidence: 92%

“…Lamond et al (2009) observed that homeowners might choose not to purchase flood coverage because they expect that, in the long term, the cost of damages from flood will be lower than the sum of annual premiums. In contrast, Blanchard-Boehm et al (2001) found that those who have purchased flood insur-ance felt that the insurance will be able to cover the cost of damages.…”

Section: Socio-economic and Demographic Determinantsmentioning

confidence: 90%

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Factors affecting flood insurance purchase in residential properties in Johor, Malaysia

Aliagha

Jin

Choong

et al. 2014

Nat. Hazards Earth Syst. Sci.

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Abstract. High-impact floods have become a virtually annual experience in Malaysia, yet flood insurance has remained a grossly neglected part of comprehensive integrated flood risk management. Using discriminant analysis, this study seeks to identify the demand-side variables that best predict flood insurance purchase and risk aversion between two groups of residential homeowners in three districts of Johor State, Malaysia: those who purchased flood insurance and those who did not. Our results revealed an overall 34 % purchase rate, with Kota Tinggi district having the highest (44 %) and thus the highest degree of flood risk aversion. The Wilks' lambda F test for equality of group means, standardised discriminant function coefficients, structure correlation, and canonical correlation has clearly shown that there are strong significant attribute differences between the two groups of homeowners, based on the measures of objective flood risk exposure, subjective risk perception, and socioeconomic cum demographic variables. However, the measures of subjective risk perception were found to be more predictive of flood insurance purchase and flood risk aversion.

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Section: U G Aliagha Et Al: Factors Affecting Flood Insurance Purcsupporting

confidence: 92%

Section: Socio-economic and Demographic Determinantsmentioning

confidence: 90%

Factors affecting flood insurance purchase in residential properties in Johor, Malaysia

Aliagha

Jin

Choong

et al. 2014

Nat. Hazards Earth Syst. Sci.

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“…In the last 25 yr, insurance companies have shown interest in this field and various papers and reports have been published (Arnell, 1987;Smith, 1994;FEMA, 1997;Munich Re, 1997;Glaschen et al, 1998;Blanchard-Boehm et al, 2001;Kron, 2009;Bhattamishra, 2010). It is important to be able to estimate the likelihood and the social, economic and environmental consequences of a disaster (Van der Sande, 2001;Queensland Government, 2002;Liu and Liu, 2002;FEMA, 2003;United Nations, 2006).…”

mentioning

confidence: 99%

Uncorrected land-use planning highlighted by flooding: the Alba case study (Piedmont, Italy)

Luino

Turconi

Petrea

et al. 2012

Nat. Hazards Earth Syst. Sci.

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Abstract. Alba is a town of over 30 000 inhabitants located along the Tanaro River (Piedmont, northwestern Italy) and is famous for its wine and white truffles. Many important industries and companies are based in Alba, including the famous confectionery group Ferrero.The town suffered considerably from a flood that occurred on 5-6 November 1994. Forty-eight percent of the urban area was inundated, causing severe damage and killing nine people. After the flood, the Alba area was analysed in detail to determine the reasons for its vulnerability.Information on serious floods in this area since 1800 was gathered from official records, state technical office reports, unpublished documents in the municipal archives, and articles published in local and national newspapers. Maps, plans and aerial photographs (since 1954) were examined to reconstruct Alba's urban development over the last two centuries and the planform changes of the Tanaro River.The results were compared with the effects of the November 1994 flood, which was mapped from aerial photographs taken immediately after the flood, field surveys and eyewitness reports.The territory of Alba was subdivided into six categories: residential; public service; industrial, commercial and hotels; sports areas, utilities and standards (public gardens, parks, athletics grounds, private and public sport clubs); aggregate plants and dumps; and agriculture and riverine strip. The six categories were then grouped into three classes with different flooding-vulnerability levels according to various parameters. Using GIS, the three river corridors along the Tanaro identified by the Autorità di Bacino del Fiume Po were overlaid on the three classes to produce a final map of the risk areas.This study shows that the historic floods and their dynamics have not been duly considered in the land-use planning of Alba. The zones that were most heavily damaged in the 1994 flood were those that were frequently affected in the past and sites of more recent urbanisation. Despite recurrent severe flooding of the Tanaro River and its tributaries, areas along the riverbed and its paleochannels have been increasingly used for infrastructure and building (e.g., roads, a municipal dump, a prison, natural aggregate plants, a nomad camp), which has often interfered with the natural spread of the floodwaters. Since the 1994 flood, many remedial projects have been completed along the Tanaro and its tributaries, including levees, bank protection, concrete walls and floodway channels. In spite of these costly projects, some areas remain at high risk for flooding.The method used, which considered historical data, river corridors identified by hydraulic calculations, geomorphological aspects and land-use planning, can indicate with good accuracy flood-prone areas and in consequence to be an useful tool for the coherent planning of urban expansion and the mitigation of flood risk.

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“…For example, it has been argued that universal insurance coverage could encourage further development in flood risk areas (Pryce 2011), and the availability of insurance, without conditions, could discourage proactive risk reduction because it acts as a buffer for recovering from flood events. One of the most apparent barriers to the promotion of flood risk reduction by insurance schemes is the absence of risk-reflective premiums (Blanchard-Boehm et al 2001, Priest 2014. Also, pursuant to what Kunreuther (2008) has referred to as "the natural disaster syndrome," stakeholders are not inclined to voluntarily take disaster risk reduction measures because of notions of risk denial or displacement.…”

Section: Setting the Scene: Resilience And The Trianglementioning

confidence: 99%

Dealing with flood damages: will prevention, mitigation, and ex post compensation provide for a resilient triangle?

Suykens¹,

Priest²,

Doorn-Hoekveld³

et al. 2016

E&S

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Should flood insurance be mandatory? Insights in the wake of the 1997 New Year’s Day flood in Reno–Sparks, Nevada

Cited by 49 publications

References 11 publications

Factors affecting flood insurance purchase in residential properties in Johor, Malaysia

Factors affecting flood insurance purchase in residential properties in Johor, Malaysia

Uncorrected land-use planning highlighted by flooding: the Alba case study (Piedmont, Italy)

Dealing with flood damages: will prevention, mitigation, and ex post compensation provide for a resilient triangle?

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