The premium for disaster insurance in Taiwan has a three-tier structure, with it being much higher for high-risk areas. We focus on the demand side and study whether the willingness to pay are unsimilar for people in different areas. We recruit 113 subjects from Hualien (a high premium areas) and Puli and Hsinchu (low premium areas) to conduct a lottery experiment and questionnaire survey. We find that, in comparison with Puli and Hsinchu, subjects from Hualien do not want to pay a higher premium for disaster insurance and their intentions for buying disaster insurance are also not higher. In addition, we also find that the subjects' behavior supports the prospect theory, in that they tend to overestimate low probabilities and underestimate high probabilities. The results from analyzing questionnaire responses are in agreement with experiment conclusions.