At first, it may seem like a silly question to ask if you should have insurance for vacant land; however, when you consider the details, this question is less simple than it first appears.
What is Property Insurance?
Property insurance is a general category and includes insurance for real estate, also called real property, and everything else called personal property. When land is held for investment purposes it is called investment property. There are many terrific reasons to have insurance on vacant land. Most have to do with value. Others have to do with the liability risk.
Work with your agent at The Select Insurance Agency, serving Coppell, TX and all the surrounding areas, to understand how to use property insurance to have adequate protection for your investments.
Determining Value
An un-developed acre of desert land, with no services, no water, and nothing on it may be worth as little as $200. An un-developed acre of desert land with no services, no water, and nothing on it, if it is located on the world-famous Las Vegas Strip, may be worth more than $5 million. The land may be virtually identical in terms of quality. The enormous difference in value is simply due to the location.
An acre of land that is covered with old-growth trees that are a rare valuable wood, like mahogany, is worth much more than an acre of the same land that has already been clear cut. An acre of desert land covered with sand might at first seem almost worthless unless it is sitting on significant oil deposits and then it could be worth billions.
Determining Risk
Property owners sometimes learn the hard way that if someone gets hurt on their property, even if that person did something stupid and the injury was their fault, there still may be some liability for the property owner. America is lawsuit crazy, so make sure you have property insurance for your legal protection as well.
Summary
Yes, you want to have property insurance for vacant land for many reasons. Consult with your agent at The Select Insurance Agency in Coppell, TX to get a comprehensive insurance review, for property insurance of all kinds, and any of your other insurance needs.
