Homeowners insurance and climate change

For many of these households, particularly those close to retirement age, a disproportionate share of their wealth is tied up in their home (2016 Survey of Consumer Finances; Apgar and Zhu, 2005). [...]housing wealth has been linked to broader, beneficial economic outcomes such as retiring early (Fa...

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Bibliographic Details
Published in:Chicago Fed Letter 2021-09 (460), p.1-6
Main Authors: Ramnath, Shanthi, Jeziorski, Will
Format: Article
Language:English
Subjects:
Climate change
Federal Reserve monetary policy
Homeowners
Homeowners insurance
Insurance claims
Insurance coverage
Purchasing
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Summary:For many of these households, particularly those close to retirement age, a disproportionate share of their wealth is tied up in their home (2016 Survey of Consumer Finances; Apgar and Zhu, 2005). [...]housing wealth has been linked to broader, beneficial economic outcomes such as retiring early (Farnham and Sevak, 2007) and increased consumption (Bostic, Gabriel, and Painter, 2009; Iacoviello, 2011). [...]there are certain types of homes, such as mobile and manufactured homes, that may be financed outside of the traditional private-mortgage market. [...]small-dollar mortgages for single-family homes (e.g., under $70,000) can be difficult to secure. [...]pooling across waves, we estimate whether there is a relationship between the probability of purchasing insurance coverage and different demographic characteristics after the household pays off their mortgage, while conditioning on year (to account for business cycle effects) and other characteristics like education, race and ethnicity, gender, and income. [...]the gap between all homeowners who identify as Hispanic (which can include homeowners of any race) and White (non-Hispanic) homeowners is 13.4 percentage points.
ISSN:0895-0164
0895-0164
2163-3592
DOI:10.21033/cfl-2021-460