CNY Insurance for Vacant Land: Everything You Need to Know

You have a piece of vacant land in a scenic corner of Central New York. You bought it for a good price. You have big plans for it. Maybe you want to build your dream home there. Maybe you want to sell it for a profit. Maybe you just want to enjoy nature.

But you also have a problem. You don’t know how to insure your vacant land. You don’t know if your homeowners policy covers it or if you need a separate policy. You don’t know how much it will cost, and you certainly don’t know what risks you face.

You’re not alone. Many people who own vacant land in Central New York face the same problem. They’re confused and frustrated by the lack of clear and reliable information. They’re worried about losing their investment or facing a lawsuit. They’re missing out on the security that comes with having the right insurance.

That’s why we wrote this article. We’re the Horan insurance agency, and we write vacant property policies for CNY residents regularly.

In this article, we will explain everything you need to know about vacant land insurance in Central New York. We will answer the most common questions, such as:

• What is vacant land insurance and why do you need it?
• How does your homeowners policy affect your vacant land insurance?
• How can you get a stand-alone vacant land policy for different ownership situations?
• How much does vacant land insurance cost and how can you save money on it?

By the end of this article, you’ll have a clear and confident understanding of how to insure your vacant land in New York State.

Is Your Land “Vacant” or “Improved,” and Why Does it Matter?

Getting a quote for vacant land insurance is very simple and quick for an insurance agent, especially if the land has no structures or activities on it. However, you need to know how an insurance company defines vacant land. If you don’t know this definition, you may have an invalid insurance policy that won’t cover you when you need it.

Whether you own a 10-acre wooded lot with a creek running through it, an acre of open field, or a stretch of water frontage on a unique parcel, the type of insurance you need depends on whether your land is vacant or improved.

What is Vacant Land?

Vacant land is land that has no structures or improvements on it. It is land that is in its natural state, as nature intended. Examples of vacant land are:

• A wooded lot that you use for hunting or camping
• A farm field that you plan to grow crops on someday
• A plot of waterfront property that you bought as an investment

What is Improved Land?

Improved land is land that has some structures or improvements on it. It is land that has been altered by human activity, such as building, paving, or landscaping. Examples of improved land are:

• A lot with a house, a garage, or a shed on it
• A field with a fence, a barn, or a silo on it
• A plot of waterfront property with a driveway, a well, or a solar panel on it

Many people are confused about what counts as a structure on vacant land. A structure is not only a building with a roof. It can also be a boat dock, fence, flagpole, water well, and many other things that are fixed on the land.

Why Does It Matter?

The difference between vacant and improved land matters for insurance purposes. If you own vacant land, you might think you don’t need insurance for it. After all, what could go wrong with a piece of land that has nothing on it?

Why You Need Liability Insurance for Your Vacant Land

Owning vacant land comes with risks and responsibilities. In insurance, there is a saying: if it happened on your property, it’s your fault. Even if you’re not at fault, you’re still liable. A No Trespassing sign won’t protect you from lawsuits or claims if someone gets injured on your property.

Liability insurance can help you in these situations. It can cover the legal fees and the medical expenses of the injured person. It can also protect you from other losses or damages that may occur on your vacant land.

Keep in mind that you cannot insure the land itself. Your insurance will not cover any losses or damages to the land, such as 

1. fallen trees, 
2. vandalism, 
3. erosion, 
4. flooding, 
5. sinkholes, or 
6. earth movement. 

You can only insure the structures you place on your land and the liability that arises from it.

How to Insure Vacant Land in New York State

If you’re a homeowner in New York, your homeowners policy may extend to vacant land. This means that your liability coverage will cover your vacant land as long as it is in New York State and it has no structures or activities on it. This is one way to get insurance for your vacant land.

However, you may not have a homeowners policy or may not want to link it to your vacant land. You may prefer a separate policy that covers only your vacant land. This is also possible and may have some advantages.

For example, 

1. you may want to have more liability coverage for your vacant land than for your home, but you don’t want to pay more for your homeowners policy. Or 
2. you may want to keep your vacant land and your home separate in case of a lawsuit or a claim. Or 
3. you may have different plans for your vacant land in the future, such as building a house or selling it.

Whatever your reason, you can get a stand-alone policy for your vacant land.

Vacant Land Policy Options for Different Ownership Situations

Another reason why you may need a separate policy for your vacant land is if you own it in a different way than through your home. 

For example, you may have bought the land in an LLC or with a partner who isn’t a co-owner of your home. In that case, your homeowners policy won’t cover your vacant land, even if it’s in New York State.

You can get a stand-alone vacant land policy for this situation. It’s very simple and affordable. The rate is usually based on two factors: the roadside frontage (measured in linear feet) and the number of acres. The more frontage and acres you have, the higher the rate. However, it’s still very affordable, usually less than $200 a year. 

You only get liability coverage, which protects you from lawsuits or claims if someone gets injured on your property.

However, you have to be careful not to make any permanent improvements on your land, such as building a house or a fence. As soon as you do that, your land is no longer vacant and you need a different policy, such as a dwelling fire policy. This policy covers both the liability on the property and the structure, as long as the structure meets the insurance standards.

Therefore, you should not do anything with your land until you’re ready to switch to a different policy. Many people buy vacant land for future plans, such as retirement or investment. They may not intend to use it for a long time. That is fine, as long as they have the right policy for their situation.

It doesn’t matter where your land is located in New York State, as long as it is within the state boundaries. You can get a vacant land policy for it, whether it is across the street from your home or in the opposite corner of the state. We can help you find the best option for your needs.

Turn Your Worries Into Security with the Right Vacant Land Insurance

Imagine looking out at your vacant land, not with trepidation about potential liabilities, but with the quiet confidence of knowing you’re prepared. That’s the power of having the right CNY insurance in place. By understanding your coverage options and navigating the nuances, you transform a potential worry into a manageable reality.

Overlooking this crucial step, however, can leave you exposed. A single incident could translate into significant financial burdens. Don’t let that be your story.

Equip yourself with the knowledge and protection you deserve. Secure your vacant land, secure your future, and step onto your property with the composure and security that comes from being prepared.

We can help you do that. We’ve helped many people like you insure their vacant land. We know the New York insurance market and the best options for your rural property. 

Click the Get a Quote button below to get started. One of our friendly and knowledgeable insurance specialists will reach out to you to discuss your policy options.

Now, find out what insurance you need when you're ready to build on your vacant land.