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The value of the pure premium, in 2014, for private properties was set equal to 2.86‰ without deductible, and to 1.63‰ after applying a 3% deductible.
Respondents were asked about their maximum WTP for baseline BHI and, separately, its three variations (i.e. BHI without ceiling, without deductible, and without coinsurance).
Mean WTP ranked as follows: WTP for BHI without ceiling > WTP for BHI without coinsurance > WTP for BHI without deductible > WTP for baseline BHI.
However, the means of the WTP for BHI without ceiling, without deductible, and without coinsurance were not significantly different from each other at the 5% confidence level.
The ranking of the point estimates of WTP for the different types of BHI was robust across all three equity weighting schemes (BHI without ceiling > BHI without coinsurance > BHI without deductible > baseline BHI) (Table 2).
Migration status was significant at the 5% confidence level in predicting WTP for baseline BHI, WTP for BHI without ceiling, and WTP for BHI without coinsurance (MIGRANT; p values between 0.0001 and 0.0475) and borderline significant in predicting WTP for BHI without deductible (both p < 0.0800).
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