The short answer is yes! If you own vacant land, you need insurance coverage. Liability coverage will extend from your homeowner’s insurance policy if the land is truly vacant.
However, if there is anything man-made on your land, you could find yourself without liability coverage if someone is hurt on your property. The man-made object could be something as simple as a concrete slab for a building that is no longer standing, a fence post, a gate, or a deer stand. Depending on the acreage that you own, you may not even be aware that the object exists, so it pays to familiarize yourself with your property.
To be on the safe side, the land should be added to your homeowner’s policy.
In a recent class, an instructor shared this real-life example of what happened to one man who did not have liability coverage extended to a property he owned:
“John” owned 40 acres of vacant land. John’s son and a friend were riding an ATV on the property. They were in an accident and both were seriously injured. Medical bills totaled hundreds of thousands of dollars.
A claim was filed against John’s home and umbrella policies. During the claims process, a concrete slab for a building that was no longer standing, an old septic tank, and some equipment to service the septic tank were found on the property. Because the land was not truly vacant, both insurance companies denied payment on the claim.
Questions? Contact us today.