
Contents
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12.1 The Role of Insurance as a Bridge between Mitigation and Risk Financing 12.1 The Role of Insurance as a Bridge between Mitigation and Risk Financing
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12.2 Mitigation Measures for Hurricane-Related Damage 12.2 Mitigation Measures for Hurricane-Related Damage
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Wind Damage Wind Damage
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Water Damage Water Damage
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12.3 Cost-Effectiveness of Risk Reduction Measures 12.3 Cost-Effectiveness of Risk Reduction Measures
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12.4 The Importance of Building Codes 12.4 The Importance of Building Codes
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Building Code Effectiveness Grading Schedule Building Code Effectiveness Grading Schedule
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Application to Florida Application to Florida
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“My Safe Florida Home” Program “My Safe Florida Home” Program
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Florida Building Codes Florida Building Codes
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Rewarding Mitigation with Premium Discounts Rewarding Mitigation with Premium Discounts
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12.5 Factors Influencing the Adoption of Mitigation Measures 12.5 Factors Influencing the Adoption of Mitigation Measures
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A Normative Model of Choice: Cost-Benefit Analysis A Normative Model of Choice: Cost-Benefit Analysis
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Behavioral Considerations Behavioral Considerations
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Budgeting Heuristics Budgeting Heuristics
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Biases in Temporal Planning Biases in Temporal Planning
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Underweighting the Future Underweighting the Future
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Underestimation of Risk Due to Excessive Optimism Underestimation of Risk Due to Excessive Optimism
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Learning Failures Learning Failures
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Social Norms and Interdependencies Social Norms and Interdependencies
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12.6 Collaboration between the Public and Private Sectors 12.6 Collaboration between the Public and Private Sectors
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The Natural Disaster Syndrome The Natural Disaster Syndrome
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The Politician’s Dilemma The Politician’s Dilemma
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Tax Incentives Tax Incentives
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Better Zoning Ordinances Better Zoning Ordinances
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Future Challenges for Encouraging Mitigation Measures Future Challenges for Encouraging Mitigation Measures
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12.7 Conclusion 12.7 Conclusion
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Summary Summary
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Appendix 12: Best Practices in Florida Appendix 12: Best Practices in Florida
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The C-4 Basin Project: Moving Water to Prevent Flooding The C-4 Basin Project: Moving Water to Prevent Flooding
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Miami Children’s Hospital Miami Children’s Hospital
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12 Enhancing the Implementation of Risk Reduction Measures
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Published:June 2009
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Abstract
This chapter explores how risk reduction measures can mitigate losses from natural disasters and how insurance can encourage more homeowners to adopt cost-effective protective measures. After discussing the role of insurance as a link between mitigation and risk financing, it shows that the adoption of building codes, as applied in Florida, dramatically minimizes damage from hurricanes, and that many homeowners do not voluntarily adopt cost-effective risk reduction mitigation measures. In addition to the implementation of building codes, adoption of mitigation measures may be increased by developing economic incentive programs such as tax rebates and by adopting zoning ordinances.
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