For the second consecutive year, Jeddah has been hit by serious floods. The event, which occurred on January 26, 2011, claimed the lives of 10 people and damaged 27 000 dwellings, 9 000 vehicles and over 90% of the road network of Saudi Arabia’s second cityMoreover, torrential rain has triggered the partial destruction of a dam which is supposed to protect the city.
As a result, a great number of houses have collapsed; hundreds of cars have been carried by the floods while a tunnel, recently built, has been completely inundated. The economic fallout is substantial as most of the victims are not covered by insurance policies.
The natural catastrophe cover is not included in the standard householder’s comprehensive insurance plan. The contracts for classical motor insurance generally rule out natural catastrophe, as well.
So far, the first estimates report 300 million SAR (80 million USD) of insured losses. In November 2009, Jeddah sustained floods which claimed the lives of 123 people and caused the insurers losses of 500 million SAR (133 million USD).