In one sentence
A study estimating a building's probable maximum loss from an earthquake, informing insurance and lending decisions in seismic zones.
The longer version
The PML figure quantifies expected seismic loss, and lenders set thresholds above which earthquake insurance or structural work is required. It is standard diligence in exposed markets like California.
The seismic report is a location-driven diligence item that can trigger insurance requirements or reserves.
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