Is Insurance Required for Vacant Land? October 27, 2022
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’s the best way to secure your vacant land which is worth a lot of money? Insurance is the best way!
You see, nothing is more successful than insurance in safeguarding your vacant land. But at the same time, choosing the right policy to suit your needs can be tricky. There isn’t a singular policy that would suit all vacant land types. For instance, you’ll need unique coverage depending on the type of vacant land you have.
But as far as getting insurance goes, we believe it’s necessary for your vacant land.
Types of Insurance for Vacant Land
You must note that the policy you can apply for in case of vacant land is a liability-only option. At most, this policy provides coverage for injuries that take place on your piece of land but will not cover damages to the property.
Hence, if you’re looking for this coverage type, do take special note of how much protection it provides. Secondly, if you’re allowing people to engage in certain activities on your vacant land, you may have to adjust your coverage in accordance.
The kind of activities that come under this protection are as follows:
- Mountain biking
- Horse riding
- Riding ATVs and motorcycles
These are exactly the kind of activities in which injuries of varying levels can occur and may require coverage. It’s 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.
Provides Financial Secuirty
You may have bought the vacant land for future developments. Perhaps you’re even planning to use it for some recreational purposes. In that case, your lender will surely want you to take the necessary precautions of insuring your property.
Protects the Purpose of the Land
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 farmland, for hunting, for motorcycles, ATVs, etc. Depending on the way you utilize the land will determine the type of coverage needed.
This is why you must work with a trusted agency to ensure you have the necessary coverage in place. When insurance agencies provide just the kind of protection your vacant land needs, you know that you’re not paying them needlessly.
If you’re asking yourself, “how much does vacant land insurance cost?” refer to our blog for more information.
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