If you own vacant land, you may assume that you don’t need insurance since there’s no property on it. However, owning vacant land can still come with risks and liabilities. Vacant land liability insurance provides financial protection for property owners against potential lawsuits and damages that could arise from incidents that occur on their property. In this guide, we’ll cover everything you need to know about vacant land liability insurance, including what it covers and why it’s important.
What is vacant land liability insurance?
Vacant land liability insurance is a type of insurance that provides coverage for property owners who own land that is not currently being used or occupied. This insurance protects property owners from lawsuits and damages that could arise from incidents that occur on their property, such as accidents or injuries that happen to individuals who trespass or enter the property without permission. The liability risks can be substantially higher compared to occupied land because you, the land owner, does not have the opportunity to oversee everything that is happening on your land.
What does vacant land liability insurance cover?
Vacant land liability insurance typically covers the following:
Bodily injury: This covers injuries to individuals who are on your vacant land and may hold you responsible for their injuries as well as their medical costs.
Property damage: This covers damages to property that occurs on your vacant land.
Legal fees and defense costs: This covers the costs of legal representation and defense in the event of a lawsuit. This can be especially important if someone was injured on your land
Why is vacant land liability insurance important?
Owning vacant land can come with various risks, even if there’s no property on it. For example, if someone enters your vacant land and gets injured, you could be held liable for their medical costs and other damages. Without vacant land liability insurance, you could be responsible for paying these costs out of pocket, which could be financially devastating.
In addition, if you plan to sell the vacant land, many buyers will require that you have vacant land liability insurance in place to protect against potential risks and liabilities.
How to choose the right coverage for your vacant land
Choosing the right vacant land liability insurance coverage for your property requires careful consideration of several factors. Here are some tips to help you choose the right coverage:
Assess your risks: Identify the potential risks and hazards that could cause damage or injury on your vacant land. Look into the landscape of your property and what risks their may be or what wildlife is in the area that could be of high risk.
Determine the value of your land: Calculate the value of your vacant land to ensure you have adequate coverage. Doing research online and looking at similar pieces of land can give you good insight into the value of your land.
Consider your location: If your vacant land is in an area that is more prone to accidents or injuries, you may need additional coverage to protect against these risks. Some examples would be mountanous areas, water hazards, or are next to public land with high foot traffic as people could easily cross onto your land unknowingly.
Review your policy regularly: Make sure to review your policy annually to ensure it still meets your needs and covers any new risks or hazards that have emerged.
Owning vacant land can be great but it also comes with risks and liabilities. Vacant land liability insurance provides financial protection for property owners against potential lawsuits and damages that could arise from incidents that occur on their property. By understanding what vacant land liability insurance covers and why it’s important, you can make informed decisions about protecting your vacant land investment.