Multifamily real estate remains a fast-growing sector, with rising demand for various types of apartment rentals. Marsh's Multifamily Center of Excellence helps owners, managers, and developers of multifamily properties better understand and innovatively manage their risks.

Shifting work trends and changing lifestyles continue to make multifamily properties attractive assets in many geographies. Encompassing a broad range of housing including  apartments, condominiums, co-operatives, affordable and low income, and single family home rentals – the multifamily sector offers growth opportunities for owners, investors, and developers.

The COVID-19 pandemic has potentially altered the demand for multifamily properties due to several factors. There are changing needs for different types of amenities both within an apartment and in apartment buildings. In addition, an increase in remote working opportunities and suburban satellite offices has changed demand within both urban and suburban settings. As the economy recovers and more businesses reopen, multifamily units will continue to evolve, but will remain a strong asset class within real estate.

Marsh's team of risk specialists has a deep understanding of the multifamily sector as well as tools to help identify, analyze, and mitigate the risks of multifamily properties.


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.

Owners, managers, and developers of multifamily properties can incur liability from various sources, including: tenants, guests, maintenance and other contractors, neighboring property owners, and members of the public.

Liability risks, like multifamily properties themselves, can vary. Some examples are slips and falls, criminal activity and breaches of physical security, as well as cyber liability — a result of properties' increasing connectivity and tenants' use of building amenities.

Each multifamily location's risks are unique, but insurance can play an important role in protecting the people and property on site. Owners, managers, and developers of multifamily properties should discuss their risks and exposures with a Marsh real estate risk specialist to determine how best to structure their insurance and risk management program.

Some coverages that can help mitigate and transfer multifamily risks include:

  • General liability
  • Property
  • Workers' compensation/employers' liability
  • Cyber liability
  • Environmental liability

Marsh’s risk specialists are dedicated to helping multifamily sector businesses understand and reduce their risks, with data-driven insights using powerful analytics, to continue to meet the needs of their tenant communities and their resilience objectives.