Earthquake Retrofit Los Angeles
Earthquake Insurance vs. Earthquake Retrofit
Los Angeles commercial property owners that invest in current properties on the West Coast, in areas that are well known to be seismically active, generally take into account both of the choices between investing in earthquake insurance and earthquake retrofitting a building.
Typically, building owners in Los Angeles will buy earthquake insurance coverage to protect against damages that happen as a result of an earthquake. On the other hand, the fact that these policies only provide help after an earthquake is very unsettling. The day following an earthquake really isn’t the most opportune time to be looking for assistance, since a lot of other businesses will likewise be looking for the help.
A huge number of investors are realizing that an earthquake retrofit tends to make more sense than simply allocating money for really expensive earthquake insurance premiums that give commercial property owners limited protection from a future earthquake hitting Los Angeles.
An insurance business bases earthquake insurance coverage premiums on the replacement value of an insured structure, not the amount of destruction. Usually these premiums run into multiple tens of thousands yearly.
Because their liability has been reduced as a result of a earthquake retrofit, insurance firms will most likely lower the premium for earthquake insurance policies because their risk is much less. And commercial property owners in Los Angeles can put their insurance premium savings toward the funds they will allocate for an earthquake retrofit project, and are able to generally gain ROI on their earthquake retrofit in three to eight years while benefitting from a building more resistant to the affects of an earthquake.
All in all, the best strategy can be dually helpful for Los Angeles commercial property owners:
- Earthquake retrofit a building to protect your assets before the next earthquake strikes and gain additional advantages in improved workplace safety, less company interruption, and decreased risk.
- Purchase earthquake insurance coverage to get added protection from the very serious short and long-term affects of an earthquake.