Vacant Land in Australia – What Are the Risks and What Can You Do

You probably already know about or have insurance that covers your buildings and contents, but have you ever stopped to think about whether you need insurance for a plot of vacant land? Surprisingly, even that empty plot can hold enormous risks for you.

We delve into the world of buying and owning vacant land in Australia and look at the potential risks associated with it and how you can protect yourself:

• Choosing an Insurer for Your Vacant Land

The most important thing to check is that any prospective insurer is suitably licensed in Australia. You should also check their financial credentials to make sure they have a strong insurer rating. Once you are confident that they are a reputable insurer for your vacant land insurance, you need to choose a policy that best suits your requirements. A good insurer will help guide you and ensure you take out the most appropriate policy and level of cover for your situation. A stand-out insurer will be globally backed.

• Risks Associated with Vacant Land Purchase

It’s easy to think that your vacant plot of land doesn’t need to be insured, but there are reasons why you need to think again. You could be liable for any injury, death or damage that occurs on your land, even for someone who had no right to be there. Other risks include errors during the purchase or in public property searches, boundary fences or neighbouring structures that extend onto your land, or discovering the land can’t be used for residential purposes as previously thought. So, whether you’re buying land via a real estate agent or privately, make sure you have adequate insurance. Click here to see what qualities real estate agents offer.

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• Vacant Land and Public Liability Risks

Having public liability insurance, also referred to as vacant land insurance or vacant land liability insurance can cover legal expenses and potential damages including injury and death which occur on your land. This type of insurance can be taken out either before or after you have purchased the land.

• What is Title Insurance for Vacant Land Buyers

This is an important type of insurance that you need to consider before buying any residential land. When considering this type of insurance, look for a policy that covers incorrect boundaries, encroaching structures built on your land, planning and zoning, errors on property searches and enquiries, fraud, and adjustment of taxes and various land charges.

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• Making a Claim

Making a claim can be a stressful experience, so you will want an insurer who will support you through the process, with outstanding customer service, an efficient claims process and technical guidance. A successful claim could potentially save you thousands of dollars. A good indicator of a reputable insurer is positive testimonials online and elsewhere.

So, when you are considering buying a vacant plot of land, or if you already own some, spend a few minutes and get a quote for vacant land insurance, and remember, if you’re taking out a vacant land loan, the lender may insist on it. Click here for more information on Land Registries.