WASHINGTON—News stories after Hurricane Harvey are bringing national attention to the unfortunate reality that many flooded homes were not covered by flood insurance. A Washington Post story, for instance, reported that only 17 percent of homeowners in affected areas had a current policy. Two researchers from Resources for the Future (RFF) provide insights on low rates of insurance take-up from a recent survey of homeowners in the floodplains of Anne Arundel County, Maryland, on the western shore of the Chesapeake Bay. In a new blog post—Why Don’t More People Buy Flood Insurance?—RFF Postdoctoral Fellow Andrew Royal and Senior Fellow Margaret Walls examine the survey’s findings.
The coauthors note: “Gaining a better understanding of why homeowners fail to purchase [flood insurance] and how to change that decisionmaking—through financial incentives, mandates and better enforcement of mandates, better communication of risks, and a host of other options—are critical concerns moving forward.”
Read the full post: Why Don’t More People Buy Flood Insurance?