Do I Need Liability Insurance for Land I Own?
While some people will dismiss the need for liability insurance on vacant land, you should seriously consider having coverage for at least two reasons. First, liability premiums on vacant land are quite inexpensive and shouldn't break your budget. Second, you probably have no control over "trespassers" or anyone else entering, crossing or otherwise accessing your bare land. Should a personal injury result, liability insurance covers you for potential claims.
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Homeowners Insurance
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Many homeowners insurance policies will cover any vacant land in the United States that you own in your name, assuming you are the insured. If you have an HO-3 homeowner's policy, you should be automatically covered for vacant land that you own in your name. Should you not have this level of coverage, ask your agent for a quote or request a premium for liability coverage for the vacant land you own.
Consider the Land Location
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People often forget to consider the location of their land when deciding about liability insurance coverage. If your land exists in an urban or suburban location, the need for liability coverage is more pressing than if your land is sequestered in a remote rural area. The probability of people entering or crossing your land in more heavily populated areas is much greater. You should definitely have liability insurance in urban and neighborhood settings to protect your other personal assets.
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No Firm Rule
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Unfortunately, there is no "need" or "must" rule to require you to maintain liability insurance on vacant land. However, the rule of common sense should prevail. Even a trespasser could suffer injury while on your land. If they choose to claim negligence in maintaining your property and sue you, even if unfounded, you may need to retain legal counsel to defend the suit. Until dismissal, this legal action will cost you money. Liability insurance will eliminate this concern, as your insurance company will defend this claim, regardless of its merits.
Land in Another Name
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Should you own vacant land under another name---a partnership, LLC or corporation---you'll be unable to receive extended liability coverage attached to your homeowner's policy. Check with your agent to get a liability insurance quote. The amount you need does not depend on the value of the land, as there are no classic hazards that can befall it. Your protection, however, depends on the amount of your assets you want to protect. The larger your personal assets---homes, cars, investments, cash---the more liability protection you should carry.
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- Photo Credit Land image by Petra Kohlstädt from Fotolia.com
