Rachel Costello, Tulane University
As destruction from weather events has increased, property insurance premiums have also risen. This article utilizes weather data from the National Oceanic and Atmospheric Administration and household survey data from IPUMS USA to answer the following question: “Is the increase in damaging weather events causing lower-income households to drop their property insurance policies at a disproportionate rate?”. While this study finds that lower-income households are more likely to be uninsured, the results indicate that the total number of weather events an area experiences does not have a significant effect on whether a household has property insurance, and the interaction effect of income and weather events appears to have a very small, if any, effect on property insurance outcomes.
Read the full paper here.