Influence of Housing Characteristics and Insurance Decisions on Post-Disaster Recovery after Hurricane Ian in Lee County, Florida

Keywords: Housing Recovery, Insurance, Hurricane
Abstract Type: Poster Abstract

Abstract

Insurance plays a critical role in facilitating housing recovery after disasters. Previous studies suggest that individuals often struggle with risk-related decisions which affect their insurance-buying behavior (Kunreuther & Pauly, 2006). However, empirical evidence on the effectiveness of insurance in the recovery process remains limited (Kousky, 2019). This study examines the relationship between insurance and housing recovery outcomes following Hurricane Ian, controlling for various household and housing characteristics. Using household survey data from a field study in the Fort Myers area capturing damage, insurance, and recovery status, two multivariate regression models are developed to understand these relationships. The first model investigates the association between household characteristics (e.g., income, race, education, family size), housing attributes (e.g., building age, residential structure type, tenure, seasonal/permanent occupancy) and the decision to purchase insurance before disaster. The second model explores how different types of insurance coverage (flood, homeowner, wind) and factors related to payouts impact housing recovery outcomes at the household level. Findings from this study provide insights into the significance of different types of insurance coverage and reveal the mediating effects of other household and housing attributes on recovery.