Does Homeowners Insurance Cover Vacant Land?

By: wpengine

|

4 minute read

Categories: Protection, Vacant Land

Landowner standing in agriculture field that he inherited.

Audio summary:

The sources provide a comprehensive overview of Vacant Land Insurance (VLI), establishing it as an essential general liability policy that protects land stewards from financial losses stemming from lawsuits rather than physical damage to the land itself. VLI is designed to cover claims related to bodily injury—such as when trespassers or hikers are hurt on the property—and property damage originating from the land. A critical factor determining coverage validity is the property’s unimproved state, as standard VLI policies may be instantly voided if the owner adds any man-made structure like a fence, dock, or shed. Therefore, land owners must choose between basic coverage for pristine tracts or specialized policies tailored for recreational tracts containing old or inherited infrastructure. While homeowners insurance may offer limited extensions for adjacent land, experts recommend specialized providers due to their better understanding of complex rural liability scenarios. Ultimately, the coverage is deemed indispensable because the necessary high-limit protection can be secured with a remarkably minimal annual premium, making the cost of prevention trivial compared to the expense of an average liability claim.

Published: May 21, 2021

If you have found yourself asking this question, you may be new to owning your own land. First things first, Congratulations! Owning your own piece of vacant land in America is a big accomplishment andsomething that should make you proud.
Since it is such an accomplishment to own your own land, protecting that yourself and your land should be one of the first steps you take.
Additionally, there is no telling what type of accidents or situations might arise on your vacant land; from trespassers to natural disasters and everything in between.
But don’t worry, you are not alone!
You can keep yourself and your land protected with a simple vacant land policy. But where do you get vacant land coverage? And how much does it cost? We will go over all that in the rest of this post.

Sponsored

What is Vacant Land Insurance Coverage? 

Vacant land insurance coverage is a general liability policy that protects pieces of vacant land or unimproved tracts.
Also, a structure is not just a home or shed on your property. If the landowner adds any structure to the land, the policy may be useless. What is considered a structure varies from insurance agency to agency and even some organizations. Examples might be:
  • High Fences
  • Boat docks or houses
  • Energy or water structures
Although some insurance companies exclude coverage from these structures, the American Hunting Lease Association does not. Liability from the use of seldom used or abandoned structures like old barns, hunting cabins, and sheds are included in the AHLA coverage. It also helps protect a landowner if someone attempts to sue you for damage done to their property or if they get hurt on your land.

Does My Home Owners Insurance Cover Vacant Land?

The short answer is, maybe! Depending on your homeowner’s insurance, they may be able to offer you an extension to vacant land insurance. Typically if your property is where you live, your homeowner’s coverage will cover the entire tract. Even land that might be adjacent to or relatively close to your own can be included in your homeowner’s policy. Ask your agent if this is possible.
The one problem seen with getting vacant land insurance through your traditional homeowner’s insurance provider is a lack of expertise. Most agents just don’t have the experience to advise on matters involving outdoor recreation type coverages.
That’s why many people prefer to work with companies that specialize in insuring vacant land. Companies like The American Hunting Lease Association are trusted among the outdoor industry by landowners and hunters alike. Giving them expert service and always catering to their needs.

Where Do I Get Vacant Land Insurance? 

The two options for getting vacant land insurance are through your homeowner’s insurance, if applicable. OR through a company that provides the coverage to you themselves.
How Much Does it Cost? 
When you compare the cost of a vacant land policy to most other insurance, it is not expensive at all. A policy with limits of one million dollars per occurrence and two million dollars aggregate will vary in the range of $225 annually, based solely on the amount of acreage. The affordability of such coverage makes it nearly impossible not to consider. “Vacant land insurance protects your land – that’s not leased and has no development or construction activities – from lawsuits with rates as low as $225 annually.
The Insurance Information Institute notes the average claim for bodily injury and property damage from 2014 to 2018 was over $26,870. That alone makes this type of coverage essential for all property owners.” Looking for more information on the cost of vacant land? Click here!

Sponsored

Conclusion
Overall, homeowner’s insurance MIGHT be able to cover your vacant land. As long as it qualifies as vacant land. If they do not offer the extensions or believe you could find high-quality coverage somewhere else. Then working with an outside company is your best bet! Accidents on vacant land may seem unlikely, but they can very quickly turn into something serious at the drop of a hat. Accidents on vacant land don’t wait for you. Make sure you are covered today!
Share this article
Author: wpengine

This is the "wpengine" admin user that our staff uses to gain access to your admin area to provide support and troubleshooting. It can only be accessed by a button in our secure log that auto generates a password and dumps that password after the staff member has logged in. We have taken extreme measures to ensure that our own user is not going to be misused to harm any of our clients sites.

Related articles