Coastal insurance availability influences management because
Answer: A
Correct answer: withdrawal of cover can render property effectively unsaleable
Insurance is the mechanism through which coastal risk reaches property values most directly. A property that cannot be insured against flooding is very difficult to mortgage and therefore to sell, so its value falls sharply - often long before the physical risk materialises. Insurers price and withdraw cover according to their own assessment of risk, which can move faster than any public policy.
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