This case study requires students to determine a method for estimating the valuation impact of the changes in access to flood insurance - specifically, changes in the expense associated with the purchase of insurance in the private market. While these expenses have a high degree of certainty, a unique challenge for students in this case is presented by the lack of comparable market transactions involving properties that have been similarly impacted. Quantifying the change in value requires students to adopt the mindset of informed market participants - individuals aware of the differential in insurance expense and who are considering the purchase of the property.
Weeks, H. S., Fraser, S. P., & Finch, J. H. (2014). Boca Bay: The impact of insurace availability on residential property values. Cornell Real Estate Review, 12, 71-81.