Can you buy an insurance policy on a section of a piece of land?

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Asked July 26, 2011

1 Answer


In a very real sense, all real estate can be described as smaller pieces of land. in real estate jargon, a section of land is roughly 1/36 of a township, and is then broken down into pieces of the section, or parcels, and sold to individual land owners. As you can see, it is necessary to insure parcels of land separately, even when they are owned by the same person or corporation, because the land is used for a wide variety of purposes and two pieces of land may have vastly different insurance requirements.

Another example would be if you owned a 3 acre plot of land with a house on one side and a business on the other side. You wouldn't need home insurance for your business, and your home doesn't require the type of coverage you'd need for running a business, such as indemnity insurance. Even though both structure are located on separate pieces of the some parcel, they would be insured independently to better accommodate the needs of each structure.

You can even buy an insurance policy to cover a specific structure or piece of property on an insured section of a piece of land. For instance, your business and home are insured on different pieces of the same parcel, and the equipment used to operate your business is insured even though the equipment is contained on an insured piece of property. In this example, the equipment is insured independently of the building, and may even be mobile, so that it can be set up at another location and used on site.

Answered July 26, 2011 by Anonymous

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