Flood Risk and the U.S. Housing Market
Carolyn Kousky, Howard Kunreuther, Michael LaCour‐Little, Susan M. Wächter
Abstract
Flooding is the most frequent and costliest natural disaster in the United States, yet most households are uninsured or underinsured against flood and may incorrectly expect that government agencies provide sufficient post-flood assistance. This paper synthesizes existing research on flood risks, flood insurance, and their impacts on the U.S. housing market. We focus on the single-family market segment, as primary residences tend to be the largest category of wealth for most households. We conclude with policy implications and suggestions for future research.
Topics & Concepts
UnderinsuredFlood mythFlood insuranceFlooding (psychology)Natural disasterBusinessGovernment (linguistics)Economic growthEconomicsGeographyHealth insurancePsychologyHealth carePhilosophyArchaeologyLinguisticsPsychotherapistMeteorologyFlood Risk Assessment and ManagementInsurance and Financial Risk ManagementAgricultural risk and resilience