B. PROPERTY LOSS ESTIMATES

The property loss estimates were obtained by first estimating the
total replacement dollar value of buildings and their contents,
multiplying them by percentage loss factors (inferred from the
anticipated strength of shaking in each county), and then summing to
obtain the aggregate loss. Included in the estimates are private as
well as Federal, State, and local government buildings, insured and
uninsured. Excluded from consideration is the replacement value of
transportation and communication facilities, dams, utility
installations, and special purpose structures (e.g., convention
centers and sports arenas). Also excluded is the potential damage
resulting from a major dam failure or the indirect dollar losses due
to such factors as higher unemployment, lower tax revenue, reduced
productivity, and stoppage of industrial production. Experience
indicates that indirect losses could be approximately equal to the
dollar amounts lost in buildings and their contents. The property loss
estimates for four postulated earthquakes on the faults listed below
are as follows.


TABLE 2

ESTIMATES OF PROPERTY LOSSES FOR REPRESENTATIVE EARTHQUAKES[1]

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Loss to Loss of
Building Contents Total Loss