Quiz

Question 1 of 10

An operator finds a parcel that offers cheap land and a fast interconnection but sits in a wildfire-exposed foothill zone. Property carriers will only cover it with a wildfire sublimit far below replacement value plus a very large deductible. Why does this typically remove the site from consideration despite its cost and schedule advantages?

• AThe sublimit means the operator would self-insure a catastrophic slice of the exposure, which lenders will not accept, so the financing cannot close
• BWildfire sublimits automatically void the interconnection agreement with the utility
• CA large deductible always makes a site cheaper to operate, so carriers discourage it
• DSublimits only apply to office buildings, not to data centers