Earthquake Retrofit Bay Area
Earthquake Retrofit vs Earthquake Insurance
Bay Area commercial property owners that purchase buildings in regions that are seismically active, regularly consider the differences between investing in earthquake insurance and earthquake retrofitting a building.
To begin, the right course of action can be dually helpful for Bay Area commercial property owners looking to be more proactive with their investment:
- Purchasing earthquake insurance coverage to get added protection from the affects of an earthquake is essential and can cost much less following an earthquake retrofit.
- Earthquake retrofitting a building to protect your assets before the next earthquake strikes offers the additional advantage of improved workplace safety, less company interruption, and decreased risk.
Conscientious Bay Area building owners will purchase earthquake insurance coverage to protect against damages that occur from an earthquake, but the unsettling fact remains that these policies only provide help after an earthquake happens. The period after an earthquake is certainly not the wisest time to start looking for help, since a lot of other businesses will be looking for assistance too.
A lot of commercial property owners are finding that an earthquake retrofit tends to make more sense than giving in to expensive earthquake insurance premiums that provide minimal protection from future earthquakes occurring in the Bay Area.
Insurance businesses base earthquake insurance premiums on a structure’s replacement value, not the degree of ruin. Typically such premiums will annually range from five to six figures. Since their risk has been lowered because of an earthquake retrofit, insurance firms will often lower the premium for earthquake insurance policies because their liability is much less. And commercial property owners in the Bay Area can put their insurance premium savings toward the expense of an earthquake retrofit project, and are able to generally gain ROI on their earthquake retrofit in about three to eight years as well as benefitting from a building that is much more durable in the event of an earthquake.