A new study by four Federal Reserve economists says climate denial may contribute to many people shunning flood insurance in the U.S., an assertion disputed by insurance and climate experts.
The study, published in Nature Climate Change, found that skepticism about climate change is “strongly correlated” with a reluctance to buy flood insurance, which is sold separately from homeowners’ policies.
Previous research has shown that many people do not buy flood insurance — or buy inadequate amounts — because they underestimate the risk of their home being flooded. The paper by economists at the Federal Reserve banks in Philadelphia and San Francisco builds on the research and finds “climate beliefs are strongly correlated with underinsurance.”
But two leading experts in flood insurance and climate change questioned the finding.
