Exclusions are part of any property insurance. A prototypically simple contract covers losses from a single peril but excludes losses from all other perils and, typically, from the insured peril in some instances. Demand for insurance is impacted by exlcuded risks. There are two tendencies here:...

This paper studies optimal property insurance in the presence of equity risk and conversion risk. Equity risk is randomness of the value of a property. It tends to raise demand for conventional insurance on the property effectively increasing the risk aversion of the property owner. In contrast,...