Abstract: The dynamic optimization model and empirical research show that:(1)commercial property insurance has long-term and short-term positive effect on household investment, but the short- term effect is greater than long-term effect;the short-term effect that the commercial property insurance impose on household consumption is negative while the long-term effect is positive.(2)with the low level consumption as a benchmark, the more household pay for commercial property insurance, the more intense willingness to consumption in households with mid-low consumption, mid-high consumption and high consumption, and the effect on mid-high consumption household is more apparent; with the households that do not want to take any risk as a benchmark, the more household pay for commercial property insurance, the more intense willingness to do various investment. Therefore, enlarging the coverage of commercial property insurance and strengthening insurance guarantee are beneficial for household to form good anticipation of consumption and investment, and then increase expenditure.

Key words: commercial property insurance, household behavior, ordered multivariate choices model