What Is Acreage in Home Insurance? Why Does It Matter.

Home insurance is a type of property insurance that covers your home and its contents against various risks, such as fire, theft, vandalism, and natural disasters.

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But what about the land that your home sits on?Does your home insurance policy also cover your acreage, or the amount of land that you own?

In this article, we will explain what acreage means in home insurance, how it affects your coverage and premiums, and what you need to know if you own vacant land or have other structures on your property.

Acreage and Dwelling Coverage

One of the main components of home insurance is dwelling coverage, which covers the physical structure of your home and any attached structures, such as a garage or a deck.

Dwelling coverage does not cover the land itself or any detached structures on your property.

The amount of dwelling coverage you need depends on how much it would cost to rebuild your home in case of a total loss.

This is not the same as the market value of your home, which includes the value of the land. To calculate the replacement cost of your home, you need to consider factors such as the size, age, quality, and features of your home, as well as the local construction costs.

Your acreage does not directly affect your dwelling coverage, but it may indirectly influence it if your home is larger or more expensive because of the size of your land.

For example, if you have a large lot with a spacious backyard, you may have a bigger house with more amenities than someone who has a smaller lot with less outdoor space.

Acreage and Liability Coverage

Another important component of home insurance is liability coverage, which covers you if someone gets injured or damages their property on your premises and sues you for compensation.

Liability coverage also covers your legal fees and medical payments for the injured party.

Your acreage may affect your liability coverage if you have more potential hazards or activities on your land that could cause an accident or injury.

For example, if you have a swimming pool, a trampoline, a pond, or a fire pit on your property, you may have a higher risk of liability claims than someone who does not have these features.

To protect yourself from liability claims, you need to make sure that you have enough liability coverage to cover the worst-case scenario.

The standard amount of liability coverage in most home insurance policies is $100,000, but you may want to increase it if you have a large acreage with more exposure to risk.

You can also consider getting an umbrella policy, which provides additional liability coverage beyond your home insurance limits.

Acreage and Vacant Land Insurance

If you own vacant land that has no buildings or structures on it, you may wonder if you need any insurance for it at all.

The answer is yes, you may still need vacant land insurance to protect yourself from liability claims.

Vacant land insurance is a form of liability insurance that covers you if someone gets hurt or damages their property on your vacant land and holds you responsible.

For example, if someone trespasses on your land and falls into a ditch or gets bitten by a snake, they may sue you for their medical bills and pain and suffering.

Vacant land insurance does not cover the land itself or any structures on it. It is purely liability protection.

It is also relatively cheap compared to other types of insuranceFor example, depending on the size and location of the property, the average $1 million/$2 million general liability vacant land policy starts at around $27 per month.

If you own vacant land, you may be able to extend your liability coverage from your existing home insurance policy to include it.

However, this may not be possible or sufficient for some situations. For example, if your vacant land is far away from your primary residence, has known hazards or dangers on it, or is used for commercial purposes or recreational activities (such as hunting or fishing), you may need to get a separate vacant land insurance policy.

Acreage and Other Structures Coverage

If you have other structures on your property that are not attached to your main dwelling, such as a shed, a barn, a fence, or a gazebo, you may need other structures coverage to protect them from damage or loss.

Other structures coverage is part of most standard home insurance policies and covers detached structures on your property against the same perils as dwelling coverage. The amount of other structures coverage is usually 10% of your dwelling coverage limit.

For example, if you have $200,000 in dwelling coverage, you would have $20,000 in other structures coverage.

However, this amount may not be enough to cover the replacement cost of all your detached structures if they are damaged or destroyed by a covered peril.

In that case, you may want to increase your other structures coverage limit or get a separate policy for your specific structures.

You should also be aware that other structures coverage does not cover structures that are used for business purposes or rented out to others.

For example, if you have a home office, a workshop, a guest house, or a storage unit on your property, you may need to get a different type of insurance policy to cover them.


Acreage is an important factor to consider when buying home insurance, as it may affect your coverage and premiums in different ways.

Depending on the size and use of your land, you may need to adjust your dwelling, liability, vacant land, and other structures coverage to suit your needs and protect your assets.

If you are unsure about how much coverage you need or what type of policy is best for you, you should consult with an independent insurance agent who can help you compare quotes and options from different insurers.An agent can also help you find discounts and savings that may lower your home insurance costs.


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