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Definition of 'Weather Insurance'
A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable temperatures or other adverse, measurable weather conditions. Weather insurance is used to insure an expensive event that could be ruined by bad weather, like an outdoor wedding or an outdoor film production.
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Investopedia explains 'Weather Insurance'
The premium for weather insurance is determined based on location and time of year, in other words, based on the likelihood of the insured weather event occurring and the amount of potential loss. Weather insurance is highly customizable, the insured can choose, for example, the number of days, weather events and severity of weather that will be covered by the policy.
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