Owning land offers numerous benefits. You might view it as a future investment, especially since land valuations tend to rise consistently year after year.
Maybe you are looking to build a family home there for the future, or you have a business idea that may come to reality sometime, but as of right now, the land is still vacant. Here are some of the main reasons why having vacant land insurance will save you from a lot of headaches.
- Property Damage Protection – There are many risks that come along with owning any land, and vacant land is no exception. The vacant land is still vulnerable and at risk of things such as natural disasters, fire or vandalism, even though there may not be any structures or buildings on the property. If any of these unfortunate incidents were to occur, having insurance can help cover the cost of repairing or replacing and other damaged properties. Click here for a great quote on your vacant land insurance.
- Liability Protection – Could you just imagine owning vacant land, not having any real plans to do anything with it in the immediate future, someone ends up getting injured on your vacant land and then proceeds to sue you as it is your land? Well, this is one of the reasons having insurance that covers liability in a case such as this is essential. It would also cover any damage to neighbouring properties – again, something that could be out of your control, therefore would need covering. Take a look here for exterior upkeep tips.
- Compliance with Lender Requirements – If any vacant land is to be purchased with a mortgage, then the lender may make it a requirement that the landowner continues to have insurance as part of the initial loan agreement. This could be a potential minefield if not followed correctly, so again, makes a lot of sense and may be imperative if a mortgage is involved.
- Financial Protection – There could be a very big hole left in your pocket without insurance, as any costs that are involved with liability claims or property damage are the responsibility of the landowner. Insurance here would provide that protection against any unexpected expenses, as these things can, and have happened in the past.
- Peace of Mind – This isn’t something we can quantify, but it is all so important. Knowing that you are protected against and are doing all you can to protect yourself from the potential risks involved with owning vacant land can be very reassuring.
Conclusion
Overall, I think it is pretty clear and goes without saying that having the correct and full coverage for your vacant land is a smart investment. Taking the risk and not having it would be a real gamble, and could lead to huge issues, both financially and legally in the future. Make sure you choose wisely, and cover all the things mentioned here. Take a look here for more information on insurance.
