A significant loss of income can have a negative impact on households who are forced to reduce their consumption of some particular staple goods. This can lead to health issues and consequently generates significant costs for society. In order to prevent these negative consequences, we suggest that consumers can buy an insurance to have a sufficient amount of staple good in case they lose a part of their income. We develop a two–period/two–good Principal–Agent problem with adverse selection and endogenous reservation utility to model an insurance with in kind benefits. This model allows us to obtain semi–explicit solutions for the insurance contract and is applied to the context of fuel poverty.

(article co-écrit avec Clémence Alasseur & Corinne Chaton).