The frequency and intensity of natural disasters is on the rise. Insurance, an often confusing and unpopular tool, will be critical to successfully emerging from the effects of these crises. Understanding Disaster Insurance provides an accessible introduction to the complexities--and exciting possibilities--of risk transfer markets in the U.S. and around the world. Carolyn Kousky, a leading researcher on disaster risk and insurance, explains how traditional insurance markets came to be structured and why they fall short in meeting the needs of a world coping with climate change. She then offers realistic, yet hopeful, examples of new approaches. Understanding Disaster Insurance is a useful guidebook for policymakers, innovators, students, and other decision makers working to secure a resilient future--and anyone affected by wind, fire, rain, or flood.