2 COMPENSATION ARRANGEMENTS FLOOD COMPENSATION OR INSURANCE2 IN M...

1.2  Compensation  Arrangements  

Flood compensation or insurance

2

in many countries is considered an important instrument to stimulate

private households and communities to invest in flood prevention and flood protection measures. Under

certain conditions flood insurance can be an effective strategy to reduce flood risk uncertainty by

spreading financial risks geographically and intertemporally (Kunreuther and Rose, 2004 from Botzen,