When worn during Rain, the player's Wetness will not increase at all. Additionally, it insulates the player against Lightning strikes and the electric shocks of a charged Volt Goat. Rain Coats are tier 1 warm clothing, providing 60 insulation from Freezing.
Rain Coats last for 10 days and a Sewing Kit will repair 50% of its durability.
The Rain Coat is a viable item to wear helmets such as Miner Hat while equipping tools or weapons without getting wet.
When fighting Moslings, the Rain Coat can be handy to protect against the frequent lightning strikes that will occur, while still allowing armor to be equipped in the head slot.
One might not benefit from the Rain Coat fully, as it's usually more efficient to wear other wetness-resistant equipment, such as an Eyebrella; and wear a Backpack or an Armor piece instead.