Some investments are particularly risky to insure. In these cases, a monoline property policy is the best choice for protection. Here are three types of properties that are likely candidates for this type of policy.
Structures with Old Pipes
Buildings with old plumbing are at risk of problems that can be expensive to solve. For example, a blockage can result in sewage backing up and flowing into the structure through the toilet, sink drains or bathtub drains. Alternately, old water lines can rust out and leak, flooding the property.
Buildings with Old Electrical Systems
Old electrical systems pose a variety of hazards. The old two-wire systems that do not have a neutral wire place a house at risk of fire. Old wires are also typically wrapped in cloth or paper, which can degrade over time or become damaged easily by rodents. The heightened risk of fire means that buildings with outdated electrical systems need specific monoline policies to cover the liability.
Properties Far from Fire Stations
Structures that are located far from fire stations are at risk of more severe fire damage than buildings that are close to them. Clearly, this places such buildings at significant risk, and a monoline policy is a good choice.
There are other types of structures that are best suited to a monoline policy. These are just a few.