Rain Insurance

Many events can be ruined by adverse weather. Whether you are planning a public event such as a fair or parade, or a private beachside wedding, you may want to protect yourself against financial loss with weather insurance.

This is a specialty insurance product and it requires a knowledgeable agent. An independent agent can help. 

Your agent can review your needs, help you compare weather insurance quotes from several providers, and find the coverage you need. Contact a local independent insurance agent for assistance today.

Rainfall Facts

• Las Vegas gets only 4.43 inches of rain a year, the least in the US.
• The wettest spot in the US is a part of Hawaii with over 400 inches of rain a year.
• There are valleys in Antarctica that go years with no precipitation at all.
• A small town in northern India gets the most annual rainfall on earth, 467 inches.

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Can Weather Insurance Protect You from Loss?

A basic weather insurance policy is designed to protect against a financial loss caused by adverse weather. You may be interested in getting rain insurance for events such as:

• Fairs
• Festivals
• Parades
• Weddings
• Motorsport events
• Golf tournaments
• Film productions
• Trade shows
• Conferences
• Concerts
• A seasonal attraction such as a winter carnival

Rain is typically the greatest concern for event hosts, but in some circumstances the trigger for coverage could be snow, fog, lightning, hail, wind or some combination of several different severe weather patterns.

Event rain insurance is normally structured to pay a claim if a certain amount of rain falls over a certain period of time. In other words, the rainfall does not necessarily have to be continuous. 

Or a rain insurance policy can be structured to pay if rain occurs for a certain number of hours during a defined period, regardless of the actual amount of rainfall.

If you are planning a long-term event, say a 30-day fair, you can expect some rain over that period and it would not make economic sense to try to insure against any rain. 

But it might be wise to purchase rain insurance against an amount of rainfall that exceeds the average for your location and time of year.

How Is Weather Monitored to Establish a Claim?

There are three methods by which you can monitor weather to establish a claim:

1. If the location of an event is near a national weather station, then data from that station can used.
2. If there is no national weather station nearby, then you can hire an independent weather observer. This person must apply to and be approved by the insurance company.
3. If you don't want to pay an independent weather observer, it is possible to obtain data from the nearest weather command, with the insurance company's approval. For a flat one-time fee, experts at the weather command will supply data for a specific location.

If you are planning an event and have a concern about weather risks, you need to give some thought to how severe an occurrence would need to be to cause you significant loss. Would it take just a brief shower, or would it take sustained rainfall to cause your event to be cancelled or curtailed?

Also, you need to consider the time during which rain would fall that could lead to a loss. Rain during the hour before an outdoor concert could have a significant affect on revenue, but rain falling during the last hour of the concert may not.

A local independent agent can help you sort through these issues and concerns. If you regularly put on events, either as an event facility or professional event planner, one of these agents can help with every aspect of your business insurance and commercial liability risks.

What Does Rain Insurance Cost?

Weather insurance for a one-day event will normally cost in the range of 2% to 10% of the amount being insured. Your specific coverage costs will depend upon the type of event, the weather patterns in your area, the amount of coverage you need, and other factors. 

The insurance company will check the weather records for your location and make a determination as to the likelihood of a loss.

Here are some additional considerations for event planners:

• Because there is a considerable amount of judgment involved in setting rates for weather insurance, it's wise to get a quote from more than one company.
• Most insurance companies will require that you purchase coverage for at least 14 days in advance of the event. This means you cannot wait until the day prior to your event, discover that severe storms are forecast for the next day, and hope to buy a policy at the last minute.

What Information Do I Need for a Quote?

If you are seeking a weather insurance quote, be prepared to supply the following information:

• The nature of the event
• The location of the event
• The amount of coverage you want
• The weather concern you want to insure against
• The definition of loss you want to use (such as inches of rain or mph of wind)
• The amount of time over which you want the policy to cover

Note that the amount of coverage you are seeking needs to be in line with your reasonably anticipated financial loss. If you are sponsoring an outdoor concert and expect to take in $25,000 in admissions, you will not qualify for $50,000 of coverage.

Also note that you may receive a quote for terms different than you requested due to the concerns of a specific insurance company. This is another reason that it is always important to obtain multiple quotes.

Other Types of Weather Insurance

The most common coverage people tend to want if they are putting on a large or expensive event is event rain insurance. However, you can also find other kinds of weather insurance. Here are a few examples:

• Suppose you are sponsoring a sailing regatta in San Francisco Bay. You may want to insure against dense fog, a frequent event in that area that could prove to be a show stopper.
• If you are planning an event in Florida or on the Gulf Coast during hurricane season, you may want to insure against that contingency.
• If you are planning an outdoor event in the Southwest during the summer, you may want to insure against temperatures exceeding a certain level.
• You may want to combine rain insurance with another occurrence, such as lightning or hail.

Situations like these are where the advice of an experienced agent can be invaluable. If you work with an independent insurance agent, you can expect to get the assistance you need to make the most informed choice.

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Start with Weather Insurance Quotes

Every weather insurance policy is unique and must be tailored for your particular needs and event. You want coverage that will give you the maximum protection at the most affordable rate.

A local independent agent can help you review all of your options, compare weather insurance quotes, and find the coverage that is right for your event. Contact a local agent for assistance today.