If you own a piece of vacant land, whether by inheritance or by investment, you must know that it’s vulnerable to several risks. So what is the best way to secure your vacant land which is worth a lot of money? Insurance is the best way!
You see, nothing can be more successful than insurance in mitigating the risks to your vacant land. But at the same time, choosing the right policy for your needs may also be tricky. There isn’t a singular policy that would suit all vacant land types. For every kind of land, you need a different coverage that is adequate for all your needs.
But as far as the point of getting insurance goes, we do believe you should take one out for your vacant land.
You may have bought the vacant land particularly for financing it for future developments. Perhaps you’re even planning to use it for some recreational purposes. In that case, your finance company will surely want you to insure the property to secure the finances involved.
The purpose for which you have bought the land also determines whether you need insurance or not. You may have bought that property to build your dream home upon. Perhaps you bought the vacant land for your prized horses to use, for transforming it into a farmland, for hunting, for motorcycles, ATVs, etc. Depending on the specific purpose for which you own the land, you must insure it according to its value.
You must note that the policy you can apply for in case of a vacant land is a liability-only option. At the most, this policy only provides coverage for injuries that can take place on your piece of land but will not cover for damages to the property.
Hence, if you are looking for this coverage type, do take special note of how much protection it provides. Secondly, if you’re allowing people to run a couple of activities on your vacant land, you may have to apply for extra protection in the form of liability insurance.
The kind of activities that come under this protection are as follows:
These are exactly the kind of activities in which injuries of varying levels can occur and may require coverage. It is also not uncommon for larger lawsuits to erupt as a result of such activities and your insurance policy for vacant land might not cover it after all.
This is why you must work with a trusted agency to ensure you have the maximum coverage possible. When insurance agencies provide just the kind of protection your vacant land needs, you know that you are not paying them needlessly.
Hence, some ideal insurance policies for specific vacant land purposes might be a better idea. These include: