Probable Maximum Loss (Seismic) Evaluations

Hillmann's expert staff will conduct a seismic study and provide a professional opinion of the estimated damage that may result from a design basis earthquake (PML), or from a smaller event with less of a predictable return period (BML), upon specific request.

A PML seismic report is generally provided for assets with improvements located in (UBC) Seismic Zone 3 or 4, and estimates the amount of damage the property might suffer as the result of the occurrence of seismic ground motions producing ground accelerations within a 50-mile radius of the site. Specific focus is directed toward establishing the damage estimated from seismic activity with an estimated return period of 475 years. This corresponds to an event that has a ten percent chance of being exceeded in a 50-year exposure period.

The PML is expressed as a damage ratio, which is defined as the approximate repair cost resulting from possible seismic sources, divided by the replacement costs of the building, but not including the value of the land, nor the market value of the property.

The Seismic Risk Assessment will utilize the evaluative method developed by Mr. Charles C. Theil, and Mr. Theodore C. Zsutty, in addition to ground acceleration data sources, including current FRISKSP Seismic computer programs.

Real Estate Due Diligence Services