Some things-like owning land out in the country that is just sitting idle and not being farmed or otherwise used for commercial purposes- might seem simple and without risk. Of course, not all things that appear simple are simple. Owning vacant land carries a certain amount of risk and responsibility to the owner, and a good way to protect a landowner from very expensive potential liability in case of accident is to have a vacant land insurance policy in place.
But not just every insurance company and agent sells such vacant land policies. Outdoor Underwriters has considerable experience with helping landowners properly insure their vacant land, and Tom Skaggs for Outdoor Underwriters provides us with some very good information and advice.
We asked Tom Skaggs to explain what is vacant land insurance and why can it be important to landowners. Skaggs says, “ All landowners have some degree of liability since they are responsible for the activities and operations that take place on their property. This extends to visitors to their land whether they be guests, invitees or contractors.” If the landowner invites or otherwise approves of someone being on vacant land, then the landowner is legally responsible for any damages or injuries which occur to the visitor while on the vacant land.
Vacant land is a good investment in mist cases, but vacant land ownership carries some potential risks which insurance can help cover.
For anyone who has experience with buying insurance policies, it is clear that there are many different types of insurance that companies offer, and a wide range of situations which are insured. When asked to explain the most commonly used vacant land policies, Skaggs says, “ General liability is the most common and can be offered various ways depending on the property and ownership; example commercially owned vs individually owned for recreational purposes. For individual landowners sometimes coverage can be provided through their homeowners policy; however. there might be limitations due to distance from primary residence or number of acres. Commercial or institutional landowners seek liability coverage designed specifically for their intended use of the land. This could range from growing and harvesting timber to mining or residential development.
Working with an experience agent to determine the best and most appropriate insurance policy for vacant land is a very good idea.
Of course, no one wants to spend money for no good reason, and this also applies to insurance. It might appear that vacant land really doesn’t involve much risk to the landowner, but this might be an expensive mistake. We asked Tom Skaggs why a landowner might need vacant land insurance and the situations where it would be especially important.
Skaggs tell us, “Landowners need liability insurance for their property. All liability claims are based on negligence that can come from a visitor being injured on your land or through the activities of a contractor working on your property. Another consideration is hunting. Many landowners either hunt or lease their land to hunting clubs. This exposure is typically excluded under basic landowner liability policies and must be proved through a hunting lease liability policy.”
Again, while vacant land insurance might seem to be a simple situation and not hard to figure out for a landowner, it is a very specific situation in many cases and the advice and help of an experienced insurance agent can be very valuable to a landowner.
Vacant land insurance can help landowners rest easy knowing that invited guests or workers are properly covered.
And like almost all things to do with property and liability issues, each specific property and each specific landowner will have individual needs. There is no
one size fits all” when it comes to vacant land insurance and vacant land insurance costs. When asked about the cost of vacant land insurance, Skaggs says, “This depends on ownership, acres, use of the property and premiums can range from a few hundred dollars to thousands.”
Finally, not every insurance agent and insurance company offers vacant land insurance to landowners, and finding a company that specializes in this kind of vacant land insurance can be hard. However , some companies specialize in this sort of insurance, and they have a long track record of providing good service to landowners.
Skaggs says, “ Specialty insurance providers offer this type of coverage. The team at Outdoor Underwriters has been working in this space for 30+ years and offer multiple options through their landowner programs and can be reached through outdoorunderwriters.com .”
So while having vacant land might seem simple and require minimal thought about potential problems for landowners, a little communication with a company that knows the facts and knows the potential damage a landowner might suffer is a very good idea.