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Insurance For Vacant Land

By March 10, 2022October 4th, 2022Personal Insurance

Vacant land insurance is one of the easiest things for an insurance agent to quote, and it’s especially easy when the land is actually vacant. To know when a property is considered vacant, you must first see how an insurance company defines vacancy. Without understanding this specific definition, you could find yourself with an insurance policy that ends up being void when it comes time to file a claim.

Vacant Land: A tract or parcel without any structures or improvements.

Whether you have an empty lot, acres of woods, or a stretch of water frontage on a unique parcel, they must all have one thing in common; no structures. The confusion lies in the fact that a structure does not have to be a building with a roof, as a structure can be a boat dock, fence, flagpole, water well, or well, you get the idea.

Once the land has anything other than vegetation, it is no longer vacant but improved. An improved property requires “dwelling fire” insurance. If your land is vacant by definition, there are a couple of different ways to insure it. Before we explore that, let’s address why you should consider a policy at all.

If you own it, you’re liable.

In insurance, there is an adage; if it happened on your property, it’s your fault! Okay, while it might not be your “fault,” it remains your responsibility. A No Trespassing sign won’t help you any more than a Beware of Dog sign would on your fence at home in the case of vacant land. Liability insurance can pay legal fees and cover the medical expenses of a person injured on your property.

The good news is that you could already have coverage without even realizing it. If you own a home and have a homeowners insurance policy, your land is most likely to be covered. That’s because liability insurance on a home insurance policy will extend to vacant land owned by the named insured. Contact your agent or carrier representative to confirm, and ask them to show you where in the policy that it is specified.

If you don’t have a homeowners policy, that’s okay. You can insure vacant land on a separate policy, and an individual policy can be helpful should you want a higher amount of liability coverage. Pricing on stand-alone vacant land insurance starts at around $250 per year.

Just remember, no matter which way you decide to insure, the land itself is not insurable. There would not be insurance coverage for fallen trees, vandalism, erosion, flooding, sinkholes, or earth movement.

If you own property that you feel might not be vacant, give us a call. You can discuss the property with us, and we’ll determine the appropriate policy type.

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