Determinants of the intention to purchase flood cover: an empirical evidence from flood-prone area in Malaysia

In places where flood is a regular occurrence, it is apparent and widely known on the devastating effect of flood on properties and human lives. However, statistics revealed by Persatuan Insurans Am Malaysia (PIAM) showed that nearly 70% of homeowners in Malaysia did not have flood insurance. As such, this paper examined the relationships between perceived flood risks, flood damage experience, and charity hazard on the purchase intention toward flood cover. A total of 100 questionnaires were collected from respondents living in flood-prone areas in Kota Bharu, Kelantan, Malaysia. The paper adopted the quantitative method of research design, which utilized descriptive analysis, correlation analysis and regression analysis to assess the raw data. The empirical results revealed that perceived flood risk, flood damage experience and charity hazard have significant relationships with the purchase intention toward flood cover. The implication of this paper provides evidence of the importance of flood cover in the event of flood