Tennessee Vacant Land Insurance Policy Information
Tennessee Vacant Land Insurance. There are a number of reasons why you may own a piece of undeveloped land. Perhaps you found a great piece of property that you are planning on building a house on one day; maybe you want to use the land for fishing or hunting; or maybe you purchased the empty piece of land next to the parcel your house sits on to prevent someone else from buying it and building a structure on it.
Whatever the reason, if you are the owner of an empty piece of land, you may have overlooked something important about owning that property: insuring it. That's where Tennessee vacant land insurance comes into play.
Tennessee vacant land insurance protects your land - that's not leased and has no development or construction activities - from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Understanding Insurance For Vacant Land
Below are some of the basics of insuring vacant land that are important for TN property owners to understand:
- If you are the outright owner of the piece of land, the law does not require you to carry insurance. However, regardless of the laws, it is still a wise idea to purchase coverage because in the event that a legal claim is filed against you, your insurance policy will provide you with the financial protection you need.
- If you are financing the property, there is a chance that the lender you are working with will require you to purchase insurance coverage for the land. This is true even if you aren't planning on building any structure on the parcel.
- Any piece of TN land that doesn't have a structure built on it is considered vacant. If the land has even the smallest building on it - such as a shed - coverage changes may be necessary.
Why Insure TN Vacant Land?
You might be thinking that because there isn't a structure on your vacant parcel of land that you don't need to insure it. After all, what could happen on empty land that would necessitate having it insured?
Believe it or not, there are a lot of risks associated with empty property. For example, if you invite people onto the property and an injury occurs, you could be held liable. You could even be held liable for injuries a trespasser sustains. In other words, it doesn't matter if you are actively using the land, you are responsible for anything that happens on it.
For example, should someone sustain an injury while hunting, such as tripping over a tree stump and breaking a bone, on your empty parcel, you could be held legally responsible and would have to cover the cost of damages, including medical care. Furthermore, someone could file a lawsuit against you for the injuries they sustained on your property. In other words, should something go awry on your empty land, you could end up having to pay out a great deal of money. It is for these reasons that Tennessee vacant land insurance is so important.
How To Insure Vacant Land
Insurance for land is a type of property coverage. There are a few ways that you can insure a vacant piece of TN property:
If you already have a homeowner's insurance policy, you can find out if your provider will allow you to extend the liability coverage the policy offers so that it will cover your empty land. Most insurance companies will allow you to extend the coverage for an additional fee.
Another option for insuring an empty parcel is with a separate Tennessee vacant land insurance policy. Many private insurers offer this type of coverage. Usually, there aren't any deductibles associated with a vacant land insurance policy. In most cases, the premiums are also reasonably priced.
What Vacant Land Insurance Does
There are several protections that vacant land insurance offers. Coverage includes:
- Bodily Injury - If someone is hurt on your property and suffers an injury, this insurance policy will cover the costs of medical care.
- Property Damage - If someone else's property (ATV, snowmobile etc.) is damaged on your vacant land, this insurance will cover the costs of repair or replacement.
- Legal Fees - Should someone file a lawsuit against you as a result of something that happens on your vacant land, your policy will cover any legal fees.
Vacant Land Used For Hunting
If you allow others use your land for hunting, it's very important to Tennessee vacant land insurance. There are many risks involved in hunting and use of firearms, which means you have a greater exposure to liability and injures or even death in the event of an accidental shooting. It is good practice to inform hunters of known dangers on your property, like abandoned wells, marsh/swamp like areas, dangerous equipment and barbed wire fences.
Some hunters may ask to use all-terrain vehicles on your land, and you should realize that you will are taking on additional liability if you llow them to use the vehicles. If an accident happens on your property, there is a good chnace you will be held responsible.
Vacant Land Insurance Court Cases
Following are some court cases relates to vacant land insurance lawsuits:
COVERAGE FOR "VACANT LAND" CANNOT INCLUDE SMALL STRUCTURE
Roger and Brenda Gomez had secured a homeowners policy from Citation Insurance covering about 175,000 square feet of land which she had inherited from her mother. In March of 1995, Kristine Provencher and a friend were playing in a bunker that was located on the property. Kristine put her left index finger through a padlock holding the bunker door. The second child suddenly pushed the door open, severing the finger. The Provenchers filed a suit against Roger and Brenda Gomez which was still pending at the time of this opinion.
The insureds forwarded the complaint to Citation requesting protection under the policy. Citation filed this action for judgment declaring it had no duty to defend and indemnify its insureds, since its policy covered "vacant" ground and the area in question was not "vacant" since the bunker and radio tower occupied the land. As it turns out, Brenda Gomez's father had built the 100 sq. ft., concrete bunker and a radio tower for use in his trucking business. The entire property and bunker had been abandoned and unused since the late 1960s. The trial court decided Citation had a duty to defend and indemnify its insureds. The company appealed.
The higher court noted the policy did not define "vacant ground." The court concluded that "vacant ground" ordinarily meant land with no structure or building on it. It also decided that "a reasonably intelligent person would understand the term 'vacant land' to mean land that is free of permanently affixed structures" and would conclude that land with an abandoned building on it was not vacant.
In reversing the judgment entered in the trial court, the higher court said that the land in question was not "vacant land" and, therefore, was not an "insured location" covered by the policy. Citation had no duty to defend or indemnify the insureds in the minor's action for damages. The action was remanded to the lower court for entry of judgment in favor of Citation.
Citation Insurance Company v. Brenda Gomez et al.--Supreme Judicial Court of Massachusetts, Essex--January 6, 1998--688 North Eastern Reporter 2d 951.
"VACANT LAND" HELD NOT COVERED FROM MOMENT IT IS OCCUPIED
A man was injured while helping his brother-in-law move a mobile home onto a lot owned by the brother-in-law, who planned to sell the mobile home and lot as a unit. He sued the insurer that carried a homeowners policy on the dwelling in which his brother-in-law lived.
The insurer moved for summary judgment, contending that the lot was not an "insured premises." The trial court granted the motion and the injured man appealed.
The appeal court noted that the homeowners policy defined "insured premises" to include "the residence premises" and, under Section II, "vacant land, other than farmland, owned by or rented to an insured person." It also noted a pertinent exclusion for "....bodily injury or property damage arising out of any premises, other than an insured premises, owned, rented or controlled by an insured person."
The court construed the ordinary meaning of "vacant" to be empty or unoccupied. It said that Florida courts have interpreted the word to mean "devoid of inanimate objects or permanently affixed structures." Accordingly, the accident did not occur on "insured premises." The judgment of the trial court was affirmed in favor of the insurance company and against the claimant.
(FORET ET AL., Plaintiff, Appellant v. LOUISIANA FARM BUREAU CASUALTY INS. CO. ET AL., Defendants, Appellees. Louisiana Court of Appeal, First Circuit. No. 90 TN 1466. June 27, 1991. 582 So.2d 989. CCH 1992 Fire and Casualty Cases, Paragraph 3639.)
LAND HELD NOT VACANT WHEN IT CONTAINED AN EMPTY HOUSE
Members of a family, who had inherited land on which their forebears had resided, were sued for wrongful death by the father of a firefighter who was killed while responding to a fire on the property. Vandals had set fire to an abandoned old house in which the older people had lived. There was also an abandoned old country store on the land.
One of the defendants made claim under the homeowners policy that he carried on his residence, located less than three miles from the subject land. The insurer brought a declaratory judgment action to determine if the claim was within the scope of the policy provisions.
"Insured location" was defined under the policy's liability insurance section to include "vacant land, other than farm land, owned by or rented to an insured...." There was not a definition of "vacant land" in the policy.
The insured said that he understood "vacant land" to be "unoccupied or unused land." The insurer argued that the parcel in question was not "vacant land" because it contained a house, and moved for summary judgment. The trial court concluded that the term "vacant land" was ambiguous, and denied the insurer's motion.
The Tennessee Court of Appeals said that the understanding of the average policyholder is paramount with regard to the meaning of words. It said that "....'vacant' is readily understood in its plain, ordinary and popular sense," and that dictionaries supply such meaning. "Vacant" was defined in Webster's Third New International Dictionary as "to be empty, be free."
The court quoted Couch on Insurance as stating that a homeowners policy "may further cover 'vacant land' but clearly such coverage does not extend to land containing buildings as 'vacant land' refers to land unoccupied, unused and in the natural state." It found the reasoning sound.
The court also said: "In this policy, the word 'vacant' modifies the word 'land,' not 'structure.' The policy covers land which is vacant." Accordingly, it found that the land in question was not vacant within the meaning of the policy.
The judgment of the trial court was reversed in favor of the insurer and against the insured.
(COTTON STATES MUTUAL INSURANCE COMPANY, Appellant v. SMELCER, Appellee. Tennessee Court of Appeals, Third Division. No. A93A1967. February 22, 1994 CCH 1994 Fire and Casualty Cases, Paragraph 4746.)
TN Vacant Land Insurance
If you own a piece of property - even if it is completely devoid of any structures - TN vacant land insurance is important. This type of policy will protect you and your assets in the event that any injuries occur on your property.
Tennessee Economic Data & Commercial Insurance Information
If you're a entrepreneur, you need more than just a great products and services and a well-established business model to be a success; you also need to choose the right location for your organization. No matter how awesome your ideas are, if your business isn't located in a place where what you offer will provide value to consumers, you're going to struggle to succeed.
Whether you're thinking about setting up the headquarters of your organization or you're planning on opening a branch of your company in Tennessee, familiarizing yourself with the economic trends and the requirements for commercial insurance in the state is crucial for your success. Below, we offer insights regarding job growth and insurance coverage requirements in The Volunteer State.
Economic Trends For Small Business In Tennessee
In regard to job growth, the state of Tennessee is exceeds the rate of national job growth. As of February 2019, unemployment rates were at a historic low in The Volunteer State, with a rate of 3.2% throughout the state; 0.1% lower than the last historic low of 3.3% in October of 2018. That's lower than the national unemployment rate, which was reported to be 3.8% in February of 2019. Economists are forecasting continued job growth throughout the state into 2019.
In addition to positive job growth, the state of Tennessee offers other favorable conditions for entrepreneurs. No personal income tax and more training and education opportunities for the workforce are just some of the factors that make The Volunteer State a great place for business owners of both established companies and startups. While the entire state offers favorable conditions for businesses, the eastern and middle areas are considered the best to start a business; this includes big cities like Nashville and Knoxville; however, cities throughout the state are also offering great opportunities for business operations, such as Chattanooga, Memphis, Pigeon Forge, Alcoa, Lebanon, and Crossville.
Industries that are thriving in Tennessee include:
- Information technology
- Technology, as a whole
Business Insurance Regulations & Limits In TN
The Tennessee Department of Commerce & Insurance regulates insurance in Tennessee. Just like any other state in the country, there are regulations in place regarding commercial insurance. Business owners are required to carry certain types of coverage to protect themselves, their clients, and their employees.
Small businesses with 5 or more employees are required by TN state law to have workers comp insurance coverage. That drops to 1 or more employees if they operate in the construction business or trades (construction service providers).
If you use certain types of motor vehicles for business-related purposes, you'll also need to invest in commercial auto insurance coverage to protect your drivers, as well as other drivers on the road.
Additional Resources For Commercial Property Insurance
Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.
- Apartment Building
- Business Interruption
- Commercial Flood Insurance
- Commercial Property
- Condo Association
- Equipment Breakdown Protection Insurance
- Homeowners Association Insurance
- Inland Marine
- Manufacturing And Mercantile Rental Property
- Mobile Home Park
- Non-Residential Building Operators
- Office Buildings
- Shopping Center & Strip Mall
- Vacant Land
- Vacant Property
Rental property owners, real estate developers and property managers should keep an accurate survey of each property they own or that is in their care. This survey should include inventories of furnishings and equipment at those properties. These documents establish the extent of their insurable interest, facilitate the arrangement and placement of insurance and minimize controversy and confusion if a loss occurs.
Insurance coverage on property, general liability and professional or errors and omissions liability should be arranged and placed for every real estate and rental property risk.
The main goal of any commercial property insurance program is to protect the insured's real and business personal property. Buildings and their contents property usually represents a significant portion of its total assets, regardless of the size of the business. A commercial property program can provide the coverage you need if a loss should occur.
The ISO Commercial Property Building and Personal Property Coverage Form is an insurance industry standard that provides this needed coverage. As a result, it should always be reviewed and used as a benchmark for comparison when evaluating any commercial property coverage form.
This policy treats business personal property as more than just the contents of a building. When there is a limit of insurance on the declarations, property can be covered if inside the building or structure or within 100 feet of the building or premises and either in the open, or even in or on a vehicle.
There are many endorsements available to tailor the ISO Commercial Property Coverage Forms. Some are mandatory for all policies while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.
These policies can provide the following additional coverages for small specific limits of insurance: debris removal, preservation of property, fire department service charge, pollutant clean up and removal, increased cost of construction and electronic data.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Contractors' Equipment, Fine Arts, Cyber Liability, Employment-related Practices, Automobile Liability and Physical Damage, and Stop Gap Liability.
Request a free Tennessee Vacant Land insurance quote in Alcoa, Arlington, Athens, Atoka, Bartlett, Bloomingdale, Brentwood, Bristol, Brownsville, Chattanooga, Church Hill, Clarksville, Cleveland, Clinton, Collegedale, Collierville, Columbia, Cookeville, Covington, Crossville, Dayton, Dickson, Dyersburg, East Ridge, Elizabethton, Erwin, Fairfield Glade, Fairview, Farragut, Fayetteville, Franklin, Gallatin, Germantown, Goodlettsville, Green Hill, Greenbrier, Greeneville, Harriman, Harrison, Hartsville, Henderson, Hendersonville, Humboldt, Jackson, Jefferson City, Johnson City, Kingsport, Kingston, Knoxville, La Follette, La Vergne, Lakeland, Lawrenceburg, Lebanon, Lenoir City, Lewisburg, Lexington, Loudon, Lynchburg, Manchester, Martin, Maryville, McKenzie, McMinnville, Memphis, Middle Valley, Milan, Millersville, Millington, Morristown, Mount Juliet, Munford, Murfreesboro, Nashville-Davidson, Newport, Nolensville, Oak Ridge, Oakland, Paris, Pigeon Forge, Portland, Pulaski, Red Bank, Ripley, Savannah, Sevierville, Seymour, Shelbyville, Signal Mountain, Smyrna, Soddy-Daisy, South Cleveland, Spring Hill, Springfield, Sweetwater, Tellico Village, Tullahoma, Union City, White House, Winchester and all other cities in TN - The Volunteer State.
Also learn about Teneessee small business insurance requirements for general liability, business property, commercial auto & workers compensation including TN business insurance costs. Call us (901) 255-6544.