Rain Insurance

Rain insurance are insurance policies that provide coverage for losses incurred due to adverse weather conditions such as rain.

These types of policies are usually underwritten for outdoor events such as festivals and concerts that might have to be cancelled due to heavy rain.

Because businesses that organize such event spend a lot of money in setup and marketing, rain on the day(s) of the events can render all that money spent as wasted.

Specialty insurance such as rain policies help give organizers some protection.

Rain insurance does not only apply to commercial events. They can be available for consumers as well.

For example, a holiday traveller might have booked a camping trip to Europe to experience the outdoors. But heavy rain or snowfall can ruin the trip.

In such circumstances, rain insurance can give a traveller enough assurance to book and go for the trip without having to worry about financial losses due to events being cancelled due to weather.

It can also increase sales as people who find it too risky to book a trip during rainy season might find it less of a barrier to booking the trip.

It is no wonder, travel agencies that sell adventure trips would promote rain insurance as well. It all adds to the bottom line by helping them generate sales revenue that would have otherwise not occurred.

Variations of these types of insurance are growing in numbers as there is a clear demand for it in the travel industry.

For example, holiday makers might have purchased a trip to Korea during the winter season as they want to ski. But upon arrival at the destination, the snow was too heavy for them to participate in it. Therefore, the travellers won’t get to do what they intended the trip to do in the first place.

Such experiences can spread and influence others to have reservations about booking these trips.

Insurance to protects travellers from such disappointment can give peace of mind and encourage them to go on these trips without needing to fear about the financial loss the weather can impose on them.

All the insured has to do to purchase such a policy could be as simple as providing:

  • Personal details
  • Dates for active coverage

This of course, would depend on the event that the policy is supposed to cover.

The premium is usually dependent on the amount of coverage requested.

It can be anywhere between 1% to 10% of coverage.

Seasonal tendencies for rain to occur can also affect the premiums required from the insurer.

It must be said however that while purchasing these types of policies can be easy and done online, making claims from them is not as straight forward as many might think.

Just because rain occurred on the specified day does not mean that a claim would be approved.

The insurer might need to see the amount of rainfall recorded on that particular day hit a certain threshold before determining that it was severe enough for claims to be made.

And damage to property is not covered.

Rain insurance is also available to provide commuters protection against price surges of ride-hailing apps due to rain.

In this case, surge pricing caused by other reasons that create high demand are not insured and people would not be able to make claims against them.

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