Many land owners don’t realize they may be held liable for accidents or injuries on their property – even if it’s unoccupied! The ordinary insurance policy may not cover these liabilities when the land or lot is vacant. Your financial interest could be at stake if someone gets injured or killed on your property and decides to sue you.
But what exactly is vacant land insurance? Keep reading to find out.
What is Vacant Land Insurance?
It’s a type of liability coverage that protects property owners in the event that someone gets injured or killed on their vacant land. It aims at securing the policyholder’s financial position that may be at risk due to other people’s actions. However, it does not protect structures on the property like barns or other buildings.
Do You Need Vacant Land Insurance?
Vacant land insurance is not a requirement by law, but it is highly recommended – especially if you own large tracts of land. Without it, you may face expensive medical costs, lawsuits, or even bankruptcy.
For instance, let’s say you have a friend who does sport fishing regularly on your land with permission. While walking, the friend stepped on a dead tree branch that you’ve been meaning to collect but never got the time and gets injured on the ankle and needs surgery. If this friend decides to sue you, you will be liable.
Just like you would be liable for injuries suffered by a friend while in your home, you could also be on the hook if they got injured while on your vacant land. It happens especially if the person’s injuries were due to negligence on your part. That’s why having land insurance can save you a lot of money and headaches in the long run.
If you buy land from Land Soar, we will always advise you to get vacant land insurance. No matter what you allow other people to do on that land, it could be hiking or hunting; you can be liable for their safety.
But What About Trespassers?
The law makes things a bit tricky. Generally, the landowners are not liable for injuries to trespassers. However, according to AllLaw, there are a few exceptions. For instance, let’s say the land sits between a school and a busy street, and children often cross it to save time while getting to school. If the landowner was aware of such trespassers and did not take any measures to protect them, they could be held liable in case of an accident. (1)
The same applies if you have a piece of land with a swimming hole, and the public often trespasses to use it. If you don’t take any measures to protect swimmers from potential danger, you may be liable should an accident happen. You may still pay even if you have placed a no trespassing sign.
What Does Land Insurance Cover?
Vacant land insurance policies typically cover the following:
- Lost wages
- Legal costs
- Medical bills
- Death benefits
- Pain and Suffering
Vacant Land Insurance Limitation:
Like any other insurance policy available, there are some things that vacant land insurance doesn’t cover. Here are some of them:
- Intentionally inflicted injuries
- Accidents sustained by the landowners, dependants, or spouses
- Injuries or casualties suffered by landowner’s workers
Working with experienced real estate agents such as Land Soar will help you understand the importance of having vacant land insurance. Don’t leave such vast investments as land to fate. Get insured!
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