Flooded Fortunes: How Property Ownership and Likelihood of Climate Events Shape Preferences on Climate Adaptation and Compensation

Climate change will cause immense financial losses as more people lose their homes to fires and floods. In high-incomecountries, those who stand to lose most in monetary terms are often private home-owners, while insurance markets increasingly fail to cover them. As insurers withdraw, governments are pressured to intervene, making property insurance a key political issue. This project investigates public views on how climate-related costs should be shared between individuals and the state. Using detailed data on property ownership, local flooding risks, and original surveys in Sweden, it provides new causal evidence on how awareness of climate risks shapes preferences for adaptation and compensation.