Flood risk may differ across income levels. In this paper, I employ unique survey data from more than 8,000 households in Germany to derive an integrated flood risk indicator that accounts for local flood exposure, assets-at-risk, housing characteristics, and household coping behavior. The results suggest that low-income households, due to their smaller homes and less valuable assets, face lower monetary flood risks than wealthier households despite the former’s limited capacity to implement protection measures and purchase insurance. Relative to the available financial budget, however, expected flood damage weighs higher for low-income households.


Flood risk; Income; Household level; Distributional aspects; Germany