Here’s an interesting case where weather insurance has been purchased, it’s rained on the day of an event and the organisers are even more happy than if it hadn’t rained at all. A rare thing you might think. The town of Amherts in Massachusetts was celebrating it’s 250th anniversary with a parade that day. The event organisers had purchased a weather insurance policy which specified that if rain above a certain amount fell between certain hours then they’d receive a payout.
On the morning of the parade it rained 0.15 inches of rain (before it had started) within the specified time period and hardly rained for the rest of the day so the parade was a success. However the weather insurance policy had been triggered and Amherst collected $30,000.
The parade cost the town $40,000 so this year the organisers were extremely happy as it had been successful and only cost them $10,000.
Often these stories are of towns who buy weather insurance, the weather affects their event but they don’t get a payout as it doesn’t quite meet the specified measures the policy uses. This case shows that if you buy weather insurance regularly then sometimes you may lose (due to triggers not being hit) and other times you may win.
Full story on the Amherst Bulletin website.