ABSTRACT
Disasters damage critical assets such as buildings, contents, and vehicles, which create losses in asset values that can be measured by the cost of repair or replacement (Lindell and Prater 2003). Such reconstruction is relatively straightforward when there are only a few affected households, but problems increase with the number of
4.1 Introduction .................................................................................................... 49 4.2 Hazard Insurance Basics ................................................................................ 51
4.2.1 Moral Hazard ...................................................................................... 52 4.2.2 Charity Hazard ................................................................................... 52 4.2.3 Concurrent Hazards ............................................................................ 53
4.3 The NFIP ........................................................................................................54 4.4 Household Insurance Purchase, Coverage, and Retention .............................54
