Why is liability insurance required for unused land?

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Asked October 15, 2012

1 Answer

Liability insurance is meant to protect you from the costs associated with injuries or damages suffered by someone else. Whether you live on or use the land is not an issue when you consider that the landowner can be held liable for any injuries or damages, including those caused by the weather. You do not need to have personal property insurance on unused land, but not having it insured at all could end up costing you a great deal of money in the long run.

If someone walks onto your unused land and twists an ankle, you can be held responsible for the injuries. If they turn around and sue you for the injury, your costs could skyrocket, leaving you forced to pay court costs, medical bills, and possibly even medical payments to compensate the injured party for lost time and wages.

Another scenario would be if a tree on your unused property falls across the property line and damages the home or other structure belonging to the owner of that property. As the property owner of the tree, you would be responsible for repairing the damages out of pocket unless you had suitable property coverage.

Even though you are not using the land, having it insured for a minimum of injury and property damage coverage is important your financial well-being. You cannot guess at what mishaps on the property could relate in expensive out of pocket costs, but paying a low monthly insurance premium will make it possible for the property to take care of itself without becoming a burden on your personal finances.

Answered October 15, 2012 by Anonymous

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