Establishment of Regional Flood Insurance program within the vulnerable coastlines specifically Dar es salaam and Teaching Resilience.
On 11th and 12th April, 2014, Dar es Salaam experienced heavy rainfall which caused runoffs in the city. More than 20 deaths were reported, the majority of them in the Kinondoni municipality. It brought severe damages to road, bridges and drainage infrastructure. Many roads were completely submerged, making access to homes, schools and workplaces impossible.
The project aims to better protect its city dwellers from floods and other climate-related threats through protection of coastlines and Building of Urban Resilience. The initiative comes as the country is grappling with the worsening impacts of climate change, such as frequent flooding and recurring drought.
According to statistics, In East Africa, Tanzania is bearing the heaviest burden of flooding, which threatens infrastructure assets worth $5.3 billion in the city of Dar es Salaam. Whereby its a home to more than 4.5 million people, the nation’s commercial capital is vulnerable to flooding, which actually cripples the ability of poorer city residents in accessing clean water and better sanitation.
The project investigates the capacity of local authorities to consider flood risk reduction measures and climate adaptation in their local plans and seeks to empower them to prioritise feasible measures in their developmental activities inorder to protect its city dwellers from floods and other climate-related threats.
Teaching climate resilience.People understanding the way to create a climate friendly and resilient urban sorroundings. Helping the poor and the vulnerable to cope with shocks which were due to climate impacts.
The initiative will focus on three priority areas which are to identify and reduce risks, and prepare emergency disaster plans which also includes the Climate risk insurance plan (The Regional Flood Insurance Program) to provide social protection to the dwellers of the vulnerable coastlines. It aims to find ways to cushion people from weather-related disasters.
What actions do you propose?
Establishment of the Regional Flood Insurance program (RFIP) which will base on the region of vulnerable coastlines of Tanzania especially in the commercial city of Dar es salaam . This will improve the government’s ability to anticipate and deal with disaster. This important initiative that is to be developed is of vast benefits.
The Regional Flood Insurance Program aims to reduce the impact of flooding on private and public structures. It does so by providing insurance which is affordable to property owners, businesses and renters and encouraging communities to enforce and adopt floodplain management regulations. These efforts will help mitigate the effects of flooding on new and improved structures.
Overall, the program reduces the socio-economic impact of disasters by promoting the purchase and retention of general risk insurance, but also of flood insurance, specifically.
Why do we need the flood insurance
Whether you end up having to repair or replace your building and or its contents, recovering from flood damage is expensive! From just one inch to several feet of flood water in your home or business. Most homeowners' and renters' insurance policies do not cover damage of the flood.
How can people purchase the insurance
The purchase of flood insurance will be through an insurance agent or an insurer participating In the Regional Flood program.
Telecommunications company such as Tigo ,Vodacom and others can also act as an agent whereby people will easily purchase the insurance bundle. It is due to the fact that the mobile banking is rapidly growing in Tanzania and there are more than 20 million mobile phones users in Tanzania.
The Coverage of the insurance with regards to the needs of the people will be based on the questions which are;
Does my community participate in the Regional Flood Insurance Program? Flood insurance from the RFIP will only be available in participating communities in the vulnerable coasts and it is on the expectations that most communities which are vulnerable to floods to participate.
What flood zone do I live in? What is my property's flood risk?. Is flood insurance mandatory for my property? Will the lender require it? Do I qualify for a Preferred Risk Policy? What will and won't be covered? How much coverage should I get for my building and for my contents? How can the cost of my flood insurance be reduced? Are there additional expenses or agency fees? Will my policy provide Replacement Cost Value or Actual Cash Value, and what's the difference between the two? Who should I call if I have a flood claim?
In this insurance program, it may be a good idea to purchase coverage for Building (the structure) and its Contents. And each has a deductible. Building coverage only covers the structure, so people should consider getting coverage for the items inside the property too (Contents coverage).
- Building property
- The insured building and its foundation
- Electrical and plumbing systems
- Central air-conditioning equipment, furnaces, and water heaters
- Refrigerators, cooking stoves, and built-in appliances such as dishwashers
- Permanently installed carpeting over unfinished flooring
- Permanently installed panelling, wallboard, bookcases, and cabinets
- Window blinds
- Detached garages
- Debris removal
- Personal contents property
- Personal belongings such as closing, furniture and electronic equipment
- Portable and window air-conditioners
- Portable microwave ovens and portable dishwashers
- Carpets that are not included in building coverage
- Clothing washers and dryers
- Food freequers and the food in them
- Certain valuable items such as original artwork and furs
Deductibles apply separately to building and contents with different amounts to choose. As with other insurance plans, a higher deductible will lower the premium you pay but will also reduce your claim payment, meaning you will need to cover the difference out of your own pocket. Sometimes a mortgage lender will set a maximum amount for your deductible
The amount you pay for your policy is calculated based on factors such as:
- Year of building construction.
- Building occupancy.
- Number of floors.
- Location of its contents.
- Flood risk (e.g., its flood zone).
- Location of the lowest floor in relation to the base flood elevation on the flood map.
- Deductible and amount of building and contents coverage
Typically, there's a waiting period of 30 days from the date of purchase until when your policy goes into effect. Here are the exceptions:
- If the building is newly designated in the high-risk Special Flood Hazard Area ( SFHA ) and you purchase flood insurance coverage for it within the 13-month period following a map revision, there is a 1-day waiting period.
- If you purchase flood insurance in connection with making, extending, increasing or renewing your mortgage loan, there is no waiting period.
- If you select additional insurance as an option on your insurance policy renewal bill, there is no waiting period.
- What you pay for flood insurance often has a lot to do with how much flood risk is associated with your building. It makes sense to reduce flood risk no matter what, but in some instances reducing flood risk can also lead to lower flood insurance costs.
As part of its strategy, an “ School of Resilience” is to be developed, in which the concept of resilience will be taught at university level to help younger generations tackle natural disasters and other threats. As it known to be that protecting fast-degrading environments in growing cities like Dar es Salaam can make them more liveable, and help them cope with extreme weather.
The aerial picture above shows flooding in In the Commercial City of Dar es salaam in Tanzania.
Who will take these actions?
Tanzania Meteorological Agency (TMA)
To provide quality, reliable and cost effective meteorological services to stakeholders' expectations thereby contributing to the protection of life and property, environment and national poverty eradication goal as a result of social protection whereby they've employed qualified staff and carefully designed procedures to provide the earliest warning about whether a flood should be expected
Non Governmental organizations in Tanzania and the international ones who work in building urban resilience.
Sokoine University of Agriculture in Tanzania. Environmental Sciences and management students in cooperation with the lectures and instructors of the Department of Geography and Environmental Studies in providing education on building resilience at university level.
Disaster risk management specialists. For the purpose of reasearch in disaster risk management.
To make a new law that will improve the government’s ability to anticipate and deal with disasters. Example, Having efficient early warning systems at regional and district levels so that local authorities can prepare for and respond to disasters timely and in an effective manner.
Insurance Firms. Different Insurance Firms in which are to establish insurance category which is to cover loss or damages which are due to floods and further targeting to establish the category which covers losses due to climate change impacts in general including cyclones and other atmospheric disturbances
Where will these actions be taken?
City of Dar es salaam
- Kinondoni Municipality
What are other key benefits?
Due to flood damage and losses to people's buildings and personal property before a flood occurs. The Regional Flood Insurance Program policies will cover up reasonable expenses incurred to protect one's insured property, and until your insured property is away from a flood or imminent danger of a flood.
Insurance solutions can help bolster early action in the face of a disaster, and speed up recovery to restore livelihoods and rebuild critical infrastructure so that people, communities and economies can rebound.
Flood insurance solution can help the Tanzanian government to protect national budgets as well as the lives and livelihoods of their citizens from the impacts of disasters, ultimately safeguarding poverty reduction efforts and economic development .
This Initiative will develop insurance solutions for the urban’s agribusinesses against the increasing costs and threats of natural disaster and climate events
A simulation depicting the benefits enrollment in flood insurance
What are the proposal’s costs?
A. Salaries and Wages
- Academic personnel
- Data managers or analysts
-Salary increases in proposal that extend into a new year, e.g., Cost of Living increases
- Vacation accrual and/or use
Total : 7400 EUR
- Fixed equipment
Total: 4000 EUR
C. Materials and Supplies
-Office supplies specifically for project
- Questionnaire forms
- Data access
- Professional conferences
-Travel for consultation
-Mileage for research participants
- Computer use/data storage
- Duplication services (reports, etc.)
ISR services (e.g., surveys)
-Unforeseen costs during project implementation
GRAND TOTAL: 40000 EUROS
The initiatives and the actions described above will begetting into implementation and establishment in an interval of 3 to 5 years.
the timeframe described will be of the above interval depending on the following factors;
-Consultancy and discussion with insurance companies.
- Discussions with the Governmental institutions of the United Republic Of Tanzania with regards to the establishment of the Flood insurance program.
- Teaching Resilience and spreading the knowledge throughout in different areas and disaster risk management
Above the timeframe stated of 5years will be expansion of the coverage of the insurance programme as it was only for the vulnerable coastlines but it will then cover a larger area which is vulnerable to floods within Tanzania.