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Floods and homeowners’ financial resilience: Survey-based evidence from the Netherlands

Author

Listed:
  • Dorien de Leeuw
  • David-Jan Jansen

Abstract

We study homeowners’ financial resilience in the face of flood risk. Us- ing three subsequent surveys among Dutch households, we compare owners of at-risk properties to a control sample of owners living out- side a potential flood zone. While the former start exhibiting greater awareness of flood risk, this awareness is not specifically reflected in financial resilience. First, we find no significant differences in terms of net financial wealth or savings. Second, the mortgages that finance the properties have comparable loan-to-value ratios, both at origina- tion and over time. The findings on resilience may reflect a high degree of trust in flood protection. The absence of insurance coverage com- bined with expected ex post government support may also be a factor.

Suggested Citation

  • Dorien de Leeuw & David-Jan Jansen, 2025. "Floods and homeowners’ financial resilience: Survey-based evidence from the Netherlands," Working Papers 845, DNB.
    • Handle: RePEc:dnb:dnbwpp:845
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    File URL: https://www.dnb.nl/media/b4nbacyz/working_paper_no-845.pdf
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    References listed on IDEAS

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    1. Christelis, Dimitris & Georgarakos, Dimitris & Jappelli, Tullio & Pistaferri, Luigi & Rooij, Maarten van, 2021. "Heterogeneous wealth effects," European Economic Review, Elsevier, vol. 137(C).
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    3. Francesco G. Caloia & Kees van Ginkel & David-Jan Jansen, 2023. "Floods and financial stability: Scenario-based evidence from below sea level," Tinbergen Institute Discussion Papers 23-083/IV, Tinbergen Institute.
    4. Matthew J. Hornsey & Emily A. Harris & Paul G. Bain & Kelly S. Fielding, 2016. "Meta-analyses of the determinants and outcomes of belief in climate change," Nature Climate Change, Nature, vol. 6(6), pages 622-626, June.
    5. P. Bubeck & W. J. W. Botzen & J. C. J. H. Aerts, 2012. "A Review of Risk Perceptions and Other Factors that Influence Flood Mitigation Behavior," Risk Analysis, John Wiley & Sons, vol. 32(9), pages 1481-1495, September.
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    More about this item

    Keywords

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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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