We present a theory of the demand for flood insurance and empirically analyze the effects of the adoption of Risk Rating 2.0, using individual insurance histories for all NFIP policies. The reform increased exit and reduced entry, both in the flood zone and its periphery. The reform had highly...

Many studies have investigated flood risk and insurance coverage in the 100-year flood zone, but much less is known about the periphery of the flood zone. We present a new approach to estimate flood risk and insurance take-up in the vicinity of the flood zone based on building-level inundation...