There is more to an earthquake retrofit that initially meets the eye. An earthquake retrofit protects not only the tenants, employees, and customers, it also protects the actual property, the equipment and any inventory inside the building. An earthquake retrofit also has the added benefit of potentially lowering insurance premiums and attracting lenders; it also helps ensure the building’s strength and safety status, providing peace of mind and longevity for business owners and renters.
It is important for commercial property owners to understand that the cost of any hardware installed during the earthquake retrofit typically becomes equity in the building since the retrofit will increase the property’s value and lower its Probable Maximum Loss (PML). Any time the PML rating is less than 20%, commercial property owners typically get a reduction in insurance premiums. Most of the time, building owners can recover their earthquake retrofit costs in two to eight years due to the reduced earthquake insurance premiums.
The lower PML rating that often comes with an earthquake retrofit may also be significant when the time comes to sell or add improvements to the building. A PML of less than 20% typically fulfills the requirements of most lenders. Since lenders will be able to provide a loan on your property, you will find more qualified buyers are attracted to your building. With a PML rating of less that 20%, any new owners will be able to more easily obtain cash for any necessary improvements or upgrades.
Possibly the most realistic benefit gained from completing an earthquake retrofit is very simply related to loss prevention. We all know that the losses incurred from a fifteen-second earthquake can be devastating to the actual building, as we have seen the many media pictures from recent major quakes. Other more important losses can occur for the people inside the building. Many businesses and other organizations sometimes find it necessary to shut down operations temporarily or to close permanently because of the destruction caused by powerful seismic activity. Lost profit due to an earthquake is often linked to the following:
- Loss of life
- Medical costs
- Loss of tenants
- Loss of building productivity, building use and overall business operations
- Cost of interim relocation
- Loss of assets within the building
- Litigation from employees & tenants
A seismic retrofit will eliminate or minimize these losses, ultimately benefiting the building’s owner. While it is nice to imagine that all buildings in danger zones were built right the first time, that is simply not the reality. To reduce your risks and potential loss, in case the “BIG ONE” occurs, and to find out more about whether your commercial property needs reinforcement, be sure to contact Saunders Seismic Commercial Retrofit for additional information. The professional team at Saunders Seismic Commercial Retrofit can provide a thorough building evaluation and they can address structural maintenance, earthquake retrofitting, and roof condensation issues. Bay Area commercial property owners should call Saunders Seismic Commercial Retrofit today!