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Risk Perceptions and Flood Insurance: Insights from Homeowners on the Georgia Coast

Author

Listed:
  • Craig Landry

    (Department of Agricultural and Applied Economics (AAEC), University of Georgia, Athens, GA 30602, USA)

  • Dylan Turner

    (Department of Agricultural and Applied Economics (AAEC), University of Georgia, Athens, GA 30602, USA)

Abstract

Scholars highlight a wide array of factors that can influence individual decision-making under risk. Utilizing survey data, we explore many potential factors that affect risk perception and protective behaviors. Our focus is on coastal Georgia, which has lower historical risk relative to the rest of the Southeast U.S., and which many people perceive as relatively safe, but was recently adversely affected by two major storms. The results indicate a majority of coastal residents expect coastal storms and other hazards to be worse in the future. The regression results suggest perceived damages, risk tolerance, wealth exposure, and flood zone are robust determinants of flood insurance purchase. Other factors, like flood zone awareness and attitudes towards community risk management initiatives—like shoreline armoring, beach replenishment, and coastal retreat—are also indicated to have a high correlation with flood insurance purchase.

Suggested Citation

  • Craig Landry & Dylan Turner, 2020. "Risk Perceptions and Flood Insurance: Insights from Homeowners on the Georgia Coast," Sustainability, MDPI, vol. 12(24), pages 1-22, December.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:24:p:10372-:d:460573
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    References listed on IDEAS

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    Cited by:

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    3. Landry, Craig & Remar, Daniel & Twinkle, Roy, 2022. "Economic Value of Restaurant Safety Measures and Propensity to Dine during the COVID-19 Pandemic," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322234, Agricultural and Applied Economics Association.

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