Vacant land is purchased for various reasons, such as long-term investment, customization for future development, potential appreciation, and minimal maintenance costs. It can also serve multiple purposes, including agriculture, storage, or recreational use, so it’s no surprise land sales rose 1.2% in 2023 and continue to rise.
Insuring vacant land can present unique challenges due to its many potential uses, and securing the right coverage is essential for mitigating risks and protecting you or your corporation from financial loss.
Read the article below as John Carroll—commercial staff underwriter at Central Insurance—shares what policies are most critical to protect your land investment.
What is Vacant Land Insurance?
Vacant land insurance is a specialized liability coverage that protects landowners like you from financial losses as a result of bodily injury or property damage liability claims. Unlike standard property insurance, which covers structures and buildings, vacant land insurance focuses solely on liability risks associated with owning undeveloped land.
“For vacant landowners, potential liability exposures around bodily injury could include walking surfaces, lakes, ponds, recreational activities such as motocross or four wheeling, abandoned vehicles, or unsecured wells,” Carroll states.
He notes that once you start to develop the land, it is usually no longer classified as vacant and requires additional insurance coverage.
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General Liability Insurance is the Most Important Coverage for Vacant Land
If someone is injured on your vacant land, general liability coverage can transfer the risk of financial loss related to payments for bodily injury and property damage (of others) from yourself to the insurance company.
He adds that because the liability rate for vacant land takes into account all of the property’s exposures, insurance companies will ask for a complete description of these exposures and underwrite the risk accordingly.
Did you know? The top 10 states to buy land in the U.S. in 2025 are Texas, Montana, Wyoming, Colorado, New Mexico, Alaska, Arizona, Utah, Oregon, and Idaho.
In addition to general liability coverage, it’s recommended to consider purchasing an umbrella policy for additional liability protection if your land contains higher risk exposures such as bodies of water or if you plan to develop the land in the future.
What Does Vacant Land Insurance Not Cover?
1. Pollution liability—standard general liability policies exclude most pollution or contamination exposures. Instead, coverage for such exposures is provided through specialized endorsements. If you’re aware of any such exposures, a pollution liability policy may be a wise choice.
2. High-risk activities—some insurance companies exclude liability for hunting or motorized recreational activities.
3. Vandalism or illegal dumping—vandalism is not covered since vacant land insurance only covers liability exposures, and illegal dumping is not a covered exposure.
4. Natural disasters—standard vacant land insurance does not cover damage from natural disasters like floods, wildfires, or earthquakes. If your land is in a high-risk area, you may need to purchase separate policies for natural disasters.
What Are Some Common Vacant Land Insurance Liability Risks?
Proactively managing your land can help lower risks and insurance costs. Carroll recommends the following best practices:
- Posting No Trespassing signs reduces the likelihood of claims from unauthorized visitors
- Installing fencing or barriers prevents unauthorized access to dangerous areas
- Sealing unused wells or ponds reduces the risk of drowning or contamination
- Performing regular inspections identifies hazards such as unstable terrain, fallen trees, or sinkholes
Why Choose Central for Vacant Land Insurance?
“At Central, we frequently provide coverage for home builders who purchase land that may remain undeveloped for some time,” Carroll clarifies. “It’s not uncommon for them to secure a property at a good price and hold it for a few years before beginning construction. Occasionally, we also insure manufacturers that own vacant land for various purposes.”
Central Insurance offers tailored solutions for landowners, providing comprehensive liability protection and expert risk management services. With a focus on long-term coverage stability and responsive claims handling, Central gives you peace-of-mind by ensuring that your investment is protected.
“The reasons for choosing Central for vacant land insurance are the same as with our other offerings—we provide reliable coverage backed by experience and strong financial stability,” he explains.
“Commercial insurance isn’t something to take lightly—it’s not like those simplified, one-size-fits-all policies you see in commercials. Protecting vacant land requires working with an experienced agent who understands the risks and can help ensure you’re properly covered.”
Find an agent to learn more about how Central can protect your investments and help find the perfect vacant land insurance coverage.
The information above is of a general nature and your policy and coverages provided may differ from the examples provided. Please read your policy in its entirety to determine your actual coverage available.
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