On November 14, 2019, the Risk Management Agency (RMA) issued a press release providing options for producers affected by flooding and excess moisture. It directs producers to contact their approved insurance provider to file a notice of loss and request more time to harvest. It contains the conditions under which an approved insurance provider may allow additional time to harvest. The information in the press release is very similar to the press release issued by RMA on October 24, 2019.
ANALYSIS – The analysis is the same as provided in the October 24, 2019 post. The major concern is that RMA states that the insurance period is not extended to allow delayed harvest but in the next sentence RMA states that any additional damage by an insured cause of loss during the extension period is covered. That sounds like the insurance period is extended. One presumes that RMA meant that any damage that occurs during the extension period from the cause of loss that delayed harvest would be covered. The damage must be due to an insurable cause of loss that occurs during the insurance period. Under the terms of the policy, any damage from causes of loss that occur after the end of the insurance period are uninsurable. However, as drafted, this is not clear.
All statements made are opinions of the author and are not intended to provide legal opinions or legal advice.