Is it required to have insurance coverage for vacant land or farms?

Although you are not normally required to have insurance coverage on vacant land, there are some good reasons to still buy it. As the owner of property that has no structures on it, you may be held liable if someone goes on your land and gets injured.

It may sound ridiculous, but if someone ignores your no trespassing sign, climbs over your fence, and falls in a hole, they can potentially sue you for the broken leg they suffered. That is not to say they will win in court, but you will still have to defend yourself. Attorney fees can add up.

Suppose you own 200 wooded acres in Colorado and allow some of your friends to go hunting on your property. Your friends will probably thank you for extending such a generous invitation and maybe even buy you a case of beer as a token of their appreciation. Usually there will be no problem and your buddies will come home with some great stories about their experience.

That is what usually happens when you invite people to hunt, fish, hike, or camp on your undeveloped property. However, there are rare occasions where someone gets hurt by falling off an ATV or getting hit on the head by a falling limb. While you would think your friends would not sue you, sometimes they do.

No one wants to spend more than they absolutely have to spend to maintain an empty lot or acres of wide-open land in the country. You already have to pay taxes on vacant land, even though you may never set foot on the property for 10 years. If your property is within city limits, you will usually have to mow the grass and maintain the vacant lot to comply with local codes.

Whether you buy acres and acres of property as an investment, or you just buy a home site where you eventually intend to build a house, it is usually a good idea to have insurance on that undeveloped property.