Vacant Land Insurance

You own vacant land.

No buildings. No structures. No tenants.

So you don't need insurance, right?

Wrong.

Here's the scary truth:

Even trespassers can sue you if they get hurt on your property.

A single slip-and-fall accident could cost you $50,000 or more in legal fees.

And that's before any settlement.

But here's the good news:

Vacant land insurance costs as little as $12 per month.

That's $144 per year for up to $2 million in liability protection.

This guide covers everything you need to know about vacant land insurance—so you can protect your investment without overpaying.

Let's dive in.

What Is Vacant Land Insurance?

Vacant land insurance is liability coverage for undeveloped property.

That's it.

It's not complicated.

But here's what most people don't understand:

Your land is a liability until you insure it.

Think about it:

Someone hikes across your property. They trip in a hole. Break their leg.

Guess who's responsible?

You are.

Even if you didn't invite them.

Even if they were trespassing.

Even if you've never set foot on the property.

The legal term is premises liability.

And it can destroy your finances.

Vacant land insurance protects you from:

• Bodily injury claims if someone gets hurt on your property
• Medical expenses for injured parties
• Legal defense costs if you get sued
• Property damage claims from neighbors
• Settlement costs if you lose a lawsuit

Here's the bottom line:

One lawsuit without insurance could cost more than the land itself.

Pro Tip: Vacant land insurance is sometimes called "land liability insurance" or "bare land insurance." They're all the same thing—liability coverage for property without structures.

Do You Really Need It? (Yes, Here's Why)

Let me be direct:

Yes, you need vacant land insurance.

Here's why:

The "Attractive Nuisance" Problem

You know that pond on your property?

Or the old well?

Or the steep cliff?

These are called "attractive nuisances."

They attract people—especially kids.

And if someone gets hurt, you're liable.

Many states have specific laws about this.

Even if you post "No Trespassing" signs, you can still be sued.

Trespassers Can Sue You

This shocks most landowners.

Someone breaks onto your property illegally.

They get hurt.

And they can still sue you.

It happens all the time.

A landowner in Michigan faced a $500,000 lawsuit when two teens were injured on an ATV on his vacant property.

He didn't invite them.

He didn't even know they were there.

But he was still held liable.

Your Other Assets Are at Risk

Without insurance, a lawsuit goes after everything you own.

Your house.

Your savings.

Your retirement accounts.

One bad accident could wipe you out.

Is saving $150 per year worth that risk?

The math is simple.

A few hundred dollars per year versus hundreds of thousands in potential liability.

Pro Tip: Even if you're "judgment proof" (no assets), a lawsuit can still ruin your credit and make it nearly impossible to get financing for future purchases.

What Vacant Land Insurance Covers

Let's break down exactly what you're paying for.

Bodily Injury Coverage

This is the big one.

If someone gets hurt on your property, bodily injury coverage pays for:

• Medical bills
• Hospital stays
• Surgery costs
• Rehabilitation
• Lost wages
• Pain and suffering damages

Coverage typically ranges from $100,000 to $2,000,000 per occurrence.

Legal Defense Coverage

Getting sued is expensive.

Even if you win.

Legal defense coverage pays for:

• Attorney fees
• Court costs
• Expert witness fees
• Investigation expenses

Here's the key:

Most policies cover your defense even if you're found not liable.

That means you're protected from day one of a lawsuit.

Property Damage Coverage

If something from your land damages neighboring property, this coverage helps.

Examples:

• A tree on your property falls onto a neighbor's fence
• Erosion from your land damages adjacent property
• Fire spreads from your land to a neighbor's

Medical Payments Coverage

This is different from bodily injury.

Medical payments coverage pays for minor injuries without determining fault.

Someone scrapes their knee on your property?

Medical payments covers it immediately.

No lawsuit required.

This helps prevent small injuries from becoming big lawsuits.

Pro Tip: Medical payments coverage is relatively cheap and can prevent small incidents from escalating into expensive lawsuits. Always include it in your policy.

How Much Does Vacant Land Insurance Cost?

Here's where it gets interesting.

Vacant land insurance is shockingly affordable.

Basic coverage starts at just $12 per month.

That's $144 per year.

For $1 million in liability protection.

But costs vary based on several factors.

Cost Factors

1. Property Size

Larger properties = higher premiums.

Some insurers charge around $0.35 per acre with a $265 minimum.

A 100-acre property might cost $300-$500 per year.

2. Geographic Location

High-population areas cost more.

So do states with lots of lawsuits (like California and Florida).

Rural Midwest properties are cheapest.

3. Property Use

How you use the land matters.

Passive investment? Cheapest rates.

Hunting or ATV riding? Higher premiums.

4. Coverage Limits

More coverage = higher cost.

$1 million coverage is standard and affordable.

$2 million or higher costs more but provides extra protection.

Cost Comparison Table

Here's something important:

Most policies have no deductible.

That means you don't pay anything out of pocket before coverage kicks in.

Zero. Nada. Nothing.

Pro Tip: Get quotes from at least 3 insurers. Prices vary significantly between companies. A few minutes of comparison shopping can save you hundreds.

3 Ways to Get Vacant Land Insurance

You have three options for getting coverage.

Each has pros and cons.

Option 1: Extend Your Homeowners Policy

If you already have homeowners insurance, this is often the easiest option.

Most homeowners policies allow you to add vacant land as an endorsement.

Pros:

• One policy to manage
• Often cheaper than standalone
• Easy to set up

Cons:

• May have coverage limitations
• Some insurers won't allow it
• Claims could affect your home insurance rates

Best for: Landowners with existing homeowners insurance who want simplicity.

Option 2: Buy a Separate Vacant Land Policy

This is a standalone policy specifically for your land.

Pros:

• Dedicated coverage
• Claims don't affect other policies
• Can customize to your specific needs

Cons:

• Separate policy to manage
• May cost slightly more
• Need to find a specialized insurer

Best for: Investors with multiple properties or high-risk land uses.

Option 3: Add an Umbrella Policy

An umbrella policy provides extra liability coverage beyond your primary policies.

Pros:

• Covers multiple properties
• Provides higher limits ($1M - $5M+)
• Fills coverage gaps

Cons:

• Requires underlying policies first
• More complex to set up
• May not cover all vacant land risks

Best for: Landowners with significant assets to protect.

Pro Tip: If you're financing your land, your lender may require insurance. Ask them what type and amount they need before shopping for coverage.

Coverage Limits: How Much Do You Need?

This is the million-dollar question.

Literally.

Here's my recommendation:

Get at least $1 million in coverage.

Why?

Because lawsuits are expensive.

The average personal injury settlement is over $50,000.

Serious injuries can result in judgments of $500,000 or more.

A $1 million policy costs about the same as lower limits.

So why risk it?

Recommended Coverage by Property Type

Low-Risk Properties (Investment Only)

• Minimum: $500,000
• Recommended: $1,000,000

Medium-Risk Properties (Occasional Use)

• Minimum: $1,000,000
• Recommended: $2,000,000

High-Risk Properties (Recreation, Hunting)

• Minimum: $1,000,000
• Recommended: $2,000,000+
• Consider: Umbrella policy for additional coverage

Understanding "Per Occurrence" vs. "Aggregate"

You'll see these terms on every policy.

Per Occurrence: Maximum paid for any single incident.

Aggregate: Maximum paid for ALL incidents in a policy year.

A typical policy is $1,000,000 per occurrence / $2,000,000 aggregate.

This means:

• Up to $1M for any single accident
• Up to $2M total for the year

That's solid protection for most landowners.

Pro Tip: If you have significant personal assets (home equity, savings, investments), consider an umbrella policy for additional protection. It's relatively cheap for the extra coverage.

What Vacant Land Insurance Doesn't Cover

Every policy has exclusions.

Here's what vacant land insurance typically won't pay for:

Structures

This is the big one.

If you have ANY structure on your property, standard vacant land insurance may not cover it.

This includes:

• Barns
• Sheds
• Hunting blinds
• Tree stands
• Old buildings (even abandoned ones)

Any structure over 500 square feet usually voids the policy.

You'll need separate coverage for structures.

Intentional Acts

Insurance doesn't cover damage you cause on purpose.

If you intentionally harm someone or their property, you're on your own.

Pollution and Environmental Damage

Most policies exclude:

• Chemical spills
• Soil contamination
• Water pollution
• Pesticide damage

If you have environmental concerns, you need specialized environmental liability insurance.

Commercial Activities

Running a business on your land?

Standard vacant land insurance won't cover it.

You'll need commercial liability coverage.

Your Own Injuries

Vacant land insurance covers third parties only.

If you or your family gets hurt on the property, it's not covered.

Pro Tip: Before buying a policy, tell your insurer EVERYTHING about your property. If you have any structures—even a small shed—disclose it. Failing to disclose can void your entire policy if you make a claim.

Special Situations: Hunting, Farming, Recreation

Different land uses need different coverage.

Hunting Properties

Hunting carries higher liability risks.

Guns + hunting = potential for serious injury.

What You Need:

• Standard vacant land liability
• Hunting liability endorsement
• Higher coverage limits ($2M+)

Cost Impact: 20-50% higher premiums than standard coverage.

Many hunting clubs use the American Hunting Lease Association (AHLA) for specialized coverage.

Their policies start around $265 minimum with $0.35 per acre pricing.

Agricultural Use / Farming

Leasing land to farmers?

You need specialized coverage.

What You Need:

• Farm liability insurance
• Environmental coverage (for pesticides)
• Equipment liability

Important: Make sure your lease requires the farmer to carry their own insurance and name you as "additional insured."

Recreational Use

Allowing camping, hiking, ATVs, or other recreation?

What You Need:

• Recreational use endorsement
• Higher liability limits
• Possibly: Waivers from users

Many states have recreational use statutes that limit landowner liability.

But they don't eliminate it entirely.

Insurance is still essential.

Pro Tip: For hunting properties, require all hunters to sign liability waivers. This adds an extra layer of protection beyond insurance. Many insurers even provide attorney-approved waiver templates.

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Frequently Asked Questions

Is vacant land insurance legally required?

No. There's no law requiring you to insure vacant land.

However, if you're financing the property, your lender will likely require liability coverage.

And even if not required, it's highly recommended.

How much does vacant land insurance cost?

Basic coverage starts at $12-$15 per month ($144-$180 annually) for $1 million in coverage.

Larger properties or high-risk uses can cost $500-$1,500 per year.

Does my homeowners insurance cover vacant land?

Maybe. Some homeowners policies can be extended to cover vacant land.

Check with your insurer. Not all policies allow this.

Can trespassers really sue me?

Yes. Even if someone enters your property illegally, they may be able to sue you for injuries.

This is especially true if there are "attractive nuisances" (ponds, wells, cliffs) or known hazards.

What does vacant land insurance NOT cover?

Standard policies exclude:

• Structures (barns, sheds, old buildings)
• Intentional acts
• Pollution/environmental damage
• Commercial activities
• Your own injuries

Do I need insurance if I never visit the property?

Yes. You're still liable for what happens on your land, whether you visit or not.

In fact, absent landowners may face MORE risk because they're not monitoring for hazards.

What happens if I build on the land?

Your vacant land policy typically ends when you start construction.

You'll need to switch to a construction or dwelling policy.

Alert your insurer before breaking ground.

Is there a deductible on vacant land insurance?

Most policies have no deductible.

You don't pay anything out of pocket before coverage kicks in.

Can I get coverage for multiple properties?

Yes. Many insurers offer portfolio coverage for multiple parcels.

Some (like NREIG) have monthly reporting systems that let you add/remove properties easily.

How do I lower my premiums?

• Install fencing and warning signs
• Eliminate known hazards
• Choose higher deductibles
• Bundle with other policies
• Shop and compare quotes

Do I need an umbrella policy too?

If you have significant assets to protect, yes.

An umbrella policy adds extra coverage beyond your primary vacant land policy.

It's relatively cheap ($300-$500 per year) for an additional $1 million in protection.