Land Insurance for Vacant Lots

Are you covered risk insurance warning signYou may be leaving your vacant lot undeveloped for a number of reasons. No matter what your vacant land is used for, you might want to consider insuring it against certain risks. If you need land insurance and are not sure where to start, contact your your own insurance agent. Your agent can help you compare quotes from multiple insurance companies and gather the information you need to make an informed decision about land insurance.

The Basics of Vacant Land Insurance

If you own your property outright, you are not required by law to buy land insurance; however, in the event of a lawsuit this coverage will be essential.

If your property is financed, your lender may require land insurance.

Vacant land cannot have any existing structures.

Land Insurance is important if your land is used for sport.

What is Land Insurance?

Land insurance is a form of property coverage that will cover a claim of bodily injury or property damage if someone has an accident on your property and you are found to be at fault. If someone files a lawsuit against you, it will also help to cover your legal fees. While it cannot cover any damage that happens to your land, it will protect you financially if others are ever on your property. To decide whether this type of insurance is important to you, consider your risks and talk with a knowledgeable insurance agent.

The easiest way to add land insurance is through your homeowner’s policy. If you own a home, you can typically extend your liability coverage to include your vacant land. If you have an umbrella liability policy, be sure to add your vacant land to that policy as well, and update your liability if needed. If you do not have a homeowner’s policy, you can purchase a separate vacant land insurance policy through and independent insurer. There is typically no deductible on these policies and the premiums are affordable. Plus, you will have peace of mind that no matter what happens on your land, your assets are covered.

What Vacant Land Insurance Does Not Cover

If you have any kind of structure on your land, even if it is temporary, your land is no longer considered “vacant” and will not be covered by vacant land insurance. If you decide to start constructing a building on your formerly vacant land, the land insurance will be void for that structure. You will need to purchase additional property insurance to cover any outbuildings or dwellings. Even if you have an old dilapidated structure on your property that has been empty for many years, your land is not considered vacant property. And if someone is injured inside an abandoned building on your property, your land insurance will not cover it. Ask your insurance agent how to protect yourself against claims that are related to abandoned buildings.

I have been a realtor and real estate land specialist in Los Angeles for more than 15 years creating opportunities for land-owners and Buyers, brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales@westsideland (dot) com and information from