Do You Need Insurance On Vacant Land?
First, If anything happens on your property, you are responsible for it. If someone has an accident on the land and breaks their leg, you are solely responsible. For example, if there is a hunter that accidentally slips and falls while hunting, you may be sued. If a driver crashes on a tree on your property, you might be sued. This may end up costing you so much more in the long run, which is why it is vital to keep you protected even when there are no structures built or erected.
Second, there are events that are out of our control such as natural disasters that may put your land and other properties at risk. If your property is not maintained and filled with weeds and grasses, there is a likely chance that a wildfire may occur from a lightning strike due to weather that affects other properties due to the fire, you are held liable.
Basically, your vacant land insurance works as your personal liability insurance on land protection. It protects you against legal costs that may fall on your shoulder if an accident occurs on the insuring land. When you have vacant land that is used constantly, it is important to check the potential danger on the property and ensure a well maintained area.
Below are some of the basics of insuring vacant land that are important for property owners to understand:
- If you are the outright owner of the piece of land, the law does not require you to carry insurance. However, regardless of the laws, it is still a wise idea to purchase coverage because in the event that a legal claim is filed against you, your insurance policy will provide you with the financial protection you need.
- If you are financing the property, there is a chance that the lender you are working with will require you to purchase insurance coverage for the land. This is true even if you aren't planning on building any structure on the parcel.
- Any piece of land that doesn't have a structure built on it is considered vacant. If the land has even the smallest building on it - such as a shed - coverage changes may be necessary.