Seismic Risk Evaluations: How Will an Earthquake Affect Your Property?
Certain areas of the country are more prone to earthquakes than others. As a property owner, lender, or investor, these areas are of particular concern, as one seismic event could have a drastic effect on the value of your property. EBI Consulting performs seismic risk evaluations to provide a conservative screening assessment of a property's seismic risk using a calculation of the probable maximum loss (PML) for the property based on the worst possible seismic occurrence.
The probable maximum loss value is estimated utilizing the St-Risk statistical software program, and is estimated such that it will not be exceeded in 90% of the buildings of a given class. The probable maximum loss value is not intended to be a guarantee of how the property will perform in a seismic occurrence; rather, it is a statistical review that is intended to suggest how the property will be affected by a probable seismic event.
Probable maximum loss values are provided as a mean recurrence interval or a probability of accidence. The mean recurrence interval is the average period of time, in years, between the occurrences of earthquakes that produce effects of the same, or greater, severity. The probability of exceedance (e.g., 10% in 50 years) is a statistical representation of the chance that earthquake effects exceeding a given severity will be experienced at the site within a specified number of years.
The probable maximum loss report issued by EBI Consulting does not take into account the value of equipment, inventory, or monetary loss from business interruption. EBI Consulting represents that the estimate of seismic performance for these buildings is based on a limited review of the property condition, and on a large measure of engineering judgment that is incorporated into the St-Risk program. Engineering judgment is a necessary component of this review, as analytical methods do not exist that will encompass all parameters required to determine an exact cost of any damage caused by the maximum possible earthquake.
To request a hard copy of a seismic zone map, please contact us. EBI Consulting's geographic information systems (GIS) department is also available for generating maps of hard-to-read seismic zone areas.
Other real estate due diligence consulting services provided by EBI Consulting include:
Learn more about EBI Consulting’s seismic risk evaluation services by calling 781.273.2500 or emailing info@ebiconsulting.com. You can also request a proposal online.