Probable Maximum Loss (PML) Reports are an often misunderstood product by our clients. Our clients ask questions and scrub down our Phase I Environmental Site Assessments and our Property Condition Reports, but our PMLs do not receive the same level of scrutiny—clients usually see the PML as a number, but there is a lot more to it.
In order to educate our clients, I have been conducting webinars on PMLs for clients and there is one more scheduled for 2010 on December 7th. Click here to register for the webinar titled: “Understanding Seismic Modeling Probable Maximum Loss Assessments.”
The goal of the webinar series is to educated underwriters on the following:
- How PMLs are calculated;
- What the input variables are into the PML calculation;
- How to order PMLs in a way that will result in consistent reporting by your engineering vendors;
- Red flag issues to look for when doing a building inspection.
If you don’t have time for the PML Webinar, I would recommend reading two articles that I wrote on the subject:
1) Managing Seismic Risk, Risk Managers Association Journal, June 2010
2) Understanding PMLs and Managing Engineering Providers, California Mortgage Brokers Association, Summer 2009
And if you don’t have time for an article, just give me a call: Joe Derhake, PE, 310-615-4500.