Red Flag: Do we all agree on the definition of "vacant"?
Most all home insurance policies automatically include coverage for additional plots of vacant land owned by a client. But what constitutes "vacant land"?
Cases heard around the country have at various times ruled that things like water pumps, abandoned foundations, roads, fences, mailboxes, mine shafts, a length of chain rope, deer stands, rockways, and flag poles have all been sufficient "improvements" as to void the automatic extention of coverage to plots of vacant land. All of these court cases stemmed from very serious injuries where coverage was denied because of these improvements!
The lesson is simple. If there's even a hint of a question as to whether the land is "vacant", be sure the plot is added as an "additional location" to the home insurance (and don't forget the Umbrella) policy. The cost should only be about $25!
Mechelsen, Inc. Darren McGraw, MBA, CIC mechelseninc.com
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