In 1998 and 2000 Typhoons Zeb, Babs and Xangsane flooded the Shijr and Wu-doo Area in northern Taiwan. The enormous damages have brought into public attention the flood mitigation effort along the Keelung River. Because the structural measures for flood protection usually takes a long time to complete, the water authorities in Taiwan are interested in undertaking the non-structural measures such as flood insurance program to mitigate the financial losses for people resided in the flood zone. In this paper, residents' flood losses and demand for flood insurance in the Shijr and Wu-doo Area are surveyed. The tobit and logit regression results show that flood risk perception and income level are significantly associated with the residents' willingness to insure. Food duration is also positively related to the maximum amount they are willing to pay. Education and governmental involvement are important factors to increase the participation rate.
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