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Predictors of home insurance purchase: the homeowners’ knowledge, perceived benefits and perceived vulnerability towards disaster losses

Tanuj Mathur (Amity Business School, Amity University Uttar Pradesh, Lucknow Campus, Lucknow, India)
Ujjwal Kanti Paul (Department of Management Studies, National Institute of Technology Durgapur, Durgapur, India)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 15 December 2022

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Abstract

Purpose

Home insurance is widely recognised as a tool for mitigating economic risk associated with natural disasters. This study aims to analyse the influence of homeowners’ home insurance knowledge (both objective and subjective types), perceived benefits (PB) and perceived vulnerability towards disaster loss (PVUL) on their intention to purchase (ITP).

Design/methodology/approach

This research makes use of survey data collected from 394 respondents (the homeowners) residing in various parts of India. The structural equation modelling is used to verify 11 hypotheses proposed in the study.

Findings

The findings indicate that both objective knowledge (OK) and subjective knowledge (SK) of home insurance have significant influence on homeowners’ benefit perception and PVUL. The homeowners’ PB of home insurance negatively affect PVUL. The OK of home insurance has a stronger influence on homeowners’ ITP home insurance than SK while the homeowners benefit perceptions and PVUL significantly affects homeowners’ ITP home insurance. These findings confirms that if homeowners are knowledgeable about home insurance, they perceive the plans as more beneficial and feel less vulnerable about catastrophic events, resulting in positive intentions towards purchasing them.

Originality/value

To the best of the authors’ knowledge, this is the first comprehensive research that assesses the Indian homeowners’ knowledge, PB and PVUL in influencing their ITP home insurance. The finding of this paper will assist both public and private insurance companies in India and similar markets in designing and implementing effective strategies to sell home insurance policies.

Keywords

Citation

Mathur, T. and Paul, U.K. (2022), "Predictors of home insurance purchase: the homeowners’ knowledge, perceived benefits and perceived vulnerability towards disaster losses", International Journal of Housing Markets and Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJHMA-08-2022-0127

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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