How is NOAA Rainfall Data Collected?

The National Oceanic and Atmospheric Administration (NOAA) collects rainfall data using an array of weather stations spread throughout the United States. The PRF program uses this collected data to determine when an indemnity should be credited toward a policy.

How is NOAA Rainfall Data Collected For Your Insured Grids?

Rainfall data for each grid that you’ve placed coverage in is collected by the four weather stations that are closest to its center. Though it's important to understand that at least one of these stations records every day, not all record every day.

How is NOAA Rainfall Data Applied To Your PRF Insurance Policy?

Once the data for a specific grid is collected at the end of an interval by NOAA’s Climate Prediction Center (CPC), it is compared to the grid’s 70-year normal so that it can be analyzed and reported as a “percentage of normal precipitation”. This process is repeated for every grid in which you’ve placed PRF coverage.

If the rainfall data for the grid(s) in which you’ve placed coverage are reported to be below normal for a covered interval, then your PRF insurance triggers an indemnity to be credited toward your policy 60-80 days after the end of an interval.