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Is non-adacent Vacant Land covered by homeowners

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Florida I own a home and a 7 acre plot of land 20 miles away. My homeowners seems to cover vacant land but is not clear on this point, from my policy:

"Insured location" means:......Vacant land, other than farm land, owned by or rented to an "insured"

Now my insurance agent is telling me to be protected I need to purchase Vacant Land insurance. I have had Umbrella insurance for years and this is the first time I have been asked to buy Vacant Land insurance. Now my agent is telling me that I never was covered, is she right?

I am only asking about liability.

This is truly vacant land, no buildings, roads, utilities, no development and no use of the land now or that I know of ever.

Thanks!
 


adjusterjack

Senior Member
Florida I own a home and a 7 acre plot of land 20 miles away. My homeowners seems to cover vacant land but is not clear on this point, from my policy:

"Insured location" means:......Vacant land, other than farm land, owned by or rented to an "insured"
Actually, that's very clear. It means exactly what it says. Your Personal Liability coverage extends to vacant land as long as it's not farm land and completely vacant - no buildings, no sheds, no structures, no evidence that you are conducting any kind of activity there.


Now my insurance agent is telling me to be protected I need to purchase Vacant Land insurance. I have had Umbrella insurance for years and this is the first time I have been asked to buy Vacant Land insurance. Now my agent is telling me that I never was covered, is she right?
Take it from me, a retired claim rep, that many agents barely know the names of the policies that they sell, let alone what's in them.

What did she say when you quoted that provision to her?
 

FlyingRon

Senior Member
After talking to my insurance company (directly to the underwriter not the agent), vacant land in another state even qualified. And for their purposes, vacant included property undergoing construction up until the building was occupyable. You should consult your insurer (and get it in writing).
 

adjusterjack

Senior Member
After talking to my insurance company (directly to the underwriter not the agent), vacant land in another state even qualified. And for their purposes, vacant included property undergoing construction up until the building was occupyable.
I wouldn't count on that being true. Underwriters are smart but they are not claims people or lawyers and their day to day activities rarely involve in-depth interpretation of insurance policy terms and conditions.

From the Florida appellate courts:

"The policy itself does not further define the term "vacant" but we construe the term as being land which is unoccupied by any permanently affixed structure or inanimate object." American Motorist Ins. Co. v. Steffens, 429 So. 2d 335 - Fla: Dist. Court of Appeals, 4th Dist. 1983

http://scholar.google.com/scholar_case?case=7401668624888637389&q=vacant+land+insurance&hl=en&as_sdt=4,10

"In insurance parlance, notably in construction of fire risk policies, "vacant" is considered the absence of inanimate objects, whereas "unoccupied" refers to the absence of animate objects. Hehemann v. Michigan Millers Mut. Ins. Co., 240 So.2d 851, 854 (Fla. 4th DCA 1970)." O'CONNER v. SAFECO INS. CO. OF NA, 352 So. 2d 1244 - Fla: Dist. Court of Appeals, 1st Dist.

http://scholar.google.com/scholar_case?case=15746121438061796332&q=vacant+land+insurance&hl=en&as_sdt=4,10

Courts often use dictionary definitions in interpreting contract terms.

Merriam Webster includes in its definition of vacant "not put to use <vacant land>."

http://www.merriam-webster.com/dictionary/vacant

My conclusion is that Personal Liability coverage would exclude land on which any construction has been started.

At any rate, coverage is doubtful enough so that it would behoove any owner of vacant land to purchase appropriate insurance on a construction project.

You should consult your insurer (and get it in writing).
It's already in writing - in the policy.

"Insured location" means:......Vacant land, other than farm land, owned by or rented to an "insured"
 
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FlyingRon

Senior Member
I understane your point on vacant vs occupied, but again, my insurer considers "under construction" structures to still be vacant. Had the property been complete (even if nobody was living there) they wanted a separate policy. The written statement of the underwriter trumps any bull you claim guys want to pull in trying to deny legitimate claims.
 

adjusterjack

Senior Member
The written statement of the underwriter trumps any bull you claim guys want to pull in trying to deny legitimate claims.
The reality is that it doesn't.

The policy provisions and appellate decisions rule.

You said you "talked" to your underwriter, not that you got a letter.

And I seriously doubt that any underwriter is gong to write a letter to any insured regarding the interpretation of the wording of any coverage.

Ask your underwriter if he is willing to issue an endorsement to your policy stating that "vacant included property undergoing construction up until the building was occupyable."
 

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