What Kind of Insurance Do You Need as a Vacant Land Owner?Posted on Mar 18, 2020
Vacant land owners have plenty of things to worry about, and getting the right insurance can make a world of difference when it comes to mitigating risks. But it isn’t always easy to know which kind of insurance is the right coverage for your vacant property.
The fact of the matter is that insurance for vacant land is not a one-size-fits-all proposition. Depending on how your vacant property is used, you may need multiple coverages to have your property adequately covered.
These are a few important considerations to keep in mind.
- Is the vacant land financed? If you have financed your vacant land with future development or specific recreational purposes in mind, your finance company probably requires you to insure the property for as long as it is financed. They may even have specific stipulations for the type of insurance required.
- How will you use the land? People buy vacant land for different reasons. For some, that is the location of their future dream home. For others, it’s a player’s paradise with room for roaming horses, roaring ATVs, and motorcycles, hunting land, farmland, etc. Still, others have no idea how to deal with vacant land that was left to them as part of an inheritance. Each one might require different insurance coverage.
What Kind of Insurance Do You Need as a Vacant Land Owner?
As a vacant landowner, you’ll need protection from several types of insurance. Depending on your situation, you may need one or more of the following:
Vacant Land Insurance
Vacant land insurance is a liability-only policy that offers protection for injuries that occur on your land. This policy often does not cover damages to your property, so keep that in mind if you’re looking for that type of coverage.
You may also need additional liability insurance protection if you allow people to do any of the following on your vacant land:
- Ride ATVs
- Ride Horses
- Mountain Biking
Injuries may occur while others are participating in these activities that could result in larger lawsuits not covered by your vacant land insurance policy.
Work with a trusted insurance agency, like Otterstedt Insurance Agency, to make sure you have the right kind of protection to meet your specific requirements and are not paying for protection you do not need.
Hunting Land Insurance
If you plan to lease access to your vacant land to hunters or offer hunting rights on your property to friends and family, you may need to purchase specialized insurance protection. You will want to have additional liability protection as well because there are many complicating risks to manage, such as the use of firearms, that pose greater liability and injury risks.
Vacant land can be a tempting target for partying teens and countless other trespassers who can become injured during their trespasses. Larger groups pose higher risks for injuries and damages that may exceed the limits of your vacant land insurance protection. Umbrella insurance kicks in when your existing policy has been exhausted to help cover the difference.
Other Things to Know About Vacant Land Insurance
You should keep an eye on your vacant property to make sure no one sets up a structure on your land – even a temporary one. It will void the vacant land insurance requiring you to purchase a different type of insurance coverage.
Another consideration is the condition of the property. If the insurance company determines that the injury occurred because of neglect or lack of maintenance, they may exclude your property from protection.
Don’t wonder if you have the right kind of vacant land insurance.