This study investigates how consumers update their perceptions of flood risk and make financial protection decisions in an era of intensifying climate change. Using monthly county-level data from the National Flood Insurance Program (NFIP), FEMA disaster records, climate datasets, and text-based measures of national media coverage, we analyze how four types of information—local floods, extreme precipitation, disasters in other states, and climate-related media—shape household uptake of flood insurance. Results show that indirect exposure to out-of-state disasters explains more than half of the variation in insurance adoption, while local floods and extreme precipitation also play significant roles. Media coverage contributes more modestly overall but has strong effects when focused on global warming or climate controversies, particularly in high-education and higher-income communities. In contrast, households in lower-education, high-risk areas respond primarily to direct flood experiences. These findings highlight the dynamic and heterogeneous ways consumers process information, underscoring the need for communication and policy strategies that are tailored to diverse populations. By centering consumer well-being and equity, the study offers actionable insights for improving risk communication, strengthening the National Flood Insurance Program, and supporting household financial resilience against climate-related disasters.

Accepted Oral Presentation