Property configurations in the multifamily sector can vary widely, and therefore so can the risks to those assets. Multifamily units can range from a single family home, with one family occupying the structure, to multistory apartment buildings with hundreds of tenants. Type of construction, location, and site features all contribute to the risk profile of multifamily properties.
For example, many multifamily properties do not have sprinklers to protect from fire, are in catastrophe-prone locations, with exposure to flood, earthquake, and windstorm risks, or are in areas that are prone to hail and tornados. The nature of multifamily properties, with 24-hour occupation, increases the potential for fire or water damage spreading to multiple units.