Five risks, one building
A seven floor multi-family building as it stands, with no water monitoring.
Risk briefing · Multi-family buildings
Where water damage starts in multi-family buildings
Property risk gets modeled around the perils that make the news. Plumbing and fixture failures are a giant risk too, and they start inside the building. Here are the five places they begin, and how to manage each one.
- confirmed water events in one year
- 2,308
- of them were leaks
- 534
- of the events started after hours
- 65%
Built on 2,308 confirmed water events in 148 monitored multi-family buildings, rental and condominium, each one verified by the Eddy monitoring center. From State of Water Risk ’26.
Plumbing belongs in the risk model
Storms and wildfire get most of the attention in a property risk review. Plumbing and fixture failures belong in the same model.
One at a time they are smaller. Together they are the loss that arrives most often, and most of it starts in four places inside the building.
How this briefing works
For each place a leak starts, the model first shows the building as it stands, with no monitoring. Then it shows the same spot with the solution in place. The fifth risk is a time of day, and it makes the other four worse.
- 1The fixtures in every unitWashers, dishwashers and toilets
- 2The pipes in the wallsRisers and concealed supply lines
- 3The fan coils behind closet doorsHVAC and condensate
- 4The mechanical room nobody visitsBoilers, hot water and the main
- 5The hours nobody is thereAfter hours and the floors below
Then what it costs, your building’s profile and common questions.
Risk 1 of 5
The fixtures in every unit
Washers, dishwashers and toilets
Supply lines that are always under pressure
Washing machines, dishwashers and toilets sit on supply lines that are always under pressure. When a hose or a fitting lets go, the water runs until someone sees it.
| Toilets | 58% of events | $20,900 a leak |
|---|---|---|
| Washing machines | 14% of leaks | $58,600 a leak |
| Dishwashers | 13% of leaks | $48,800 a leak |
A burst washer hose releases 500 plus gallons an hour into the flooring, the cabinets and the unit below.
A sensor under each fixture and a valve on the unit’s line
An Eddy H2O sits on the floor under each fixture. Water that reaches its contacts sets off an alert over LoRaWAN in seconds, to your team and the 24/7 monitoring center at the same time.
An Eddy IQ on the unit’s supply line meters it and can close it on a rule you set. Only that unit loses water.
Shutoff rules are configured per building. Some sites use operator-coordinated isolation instead.
Further reading: Appliance leaks in multifamily buildings
Next, risk 2: the pipes in the wallsRisk 2 of 5
The pipes in the walls
Risers and concealed supply lines
Concealed lines, and gravity
33%of multi-family leaks start in pipes and risers, at $111,600 a leak, the most damaging source in the building
The lines are concealed in walls and shafts and pressurized at 40 to 80 PSI. A failed fitting can release 5 to 8 gallons a minute into drywall and insulation before anyone sees a stain.
Gravity does the rest. 79% of major leaks start on floors 2 to 10, high enough to have floors below. Floors 2 to 5 alone saw 142 leaks, 27 of them major.
January is the busiest month, with 81 leaks and 44 of them major, when heating is under load and pipes are at their coldest. PRMA’s webinar library has a session with NFPA on preparing a building for a winter freeze.
Sensors at the risers, meters on the flow
An Eddy H2O sits at the foot of the risers on every floor, where water from a riser leak shows up first.
Meters watch the flow for the leaks no sensor can reach. In the basement, Eddy Link reads the meter on the main and drives the valves on the main and on each riser zone, provisioned and configured by Eddy. The valves close on the rules you set, automatically at a threshold or remotely from the dashboard.
Further reading: Burst and frozen pipes in buildings and Riser rooms and water risers
Next, risk 3: the fan coils behind closet doorsRisk 3 of 5
The fan coils behind closet doors
HVAC and condensate
Drain pans out of sight
17%of multi-family leaks start in HVAC equipment, at $90,700 a leak. More than half of HVAC events are genuine leaks.
Fan coils and their condensate lines sit in closets inside each unit and above ceilings. When a drain pan overflows, the water goes into the floor and the ceiling below, out of sight.
A sensor in every drain pan
An Eddy H2O sits in the drain pan under each fan coil, so an overflow is caught in the pan instead of the ceiling below. On the heating and cooling loop, meters watch the make-up water and a valve can isolate the loop.
Further reading: HVAC water leaks, and why they cost so much
Next, risk 4: the mechanical room nobody visitsRisk 4 of 5
The mechanical room nobody visits
Boilers, hot water and the main
A room nobody visits after hours
1 in 23boiler room sensors found a leak, the highest risk per sensor of any source, at $76,700 a leak
Boilers and domestic hot water make few events, but the water is scalding and under pressure, in a room nobody visits after hours. The building’s domestic main comes in here too.
Sensors at the boilers, a valve on the main
Eddy H2O sensors sit at the boilers and tanks and track temperature and humidity as well as water. On the domestic main, Eddy Link drives a motorized valve that closes on a rule or remotely from the dashboard.
Next, risk 5: the hours nobody is thereRisk 5 of 5
The hours nobody is there
After hours and the floors below
Nobody there to see it
Every confirmed event carries a timestamp. 65% of multi-family events start after hours, and major leaks, the ones with the most destructive potential, peak at 2 AM, when the resident is asleep and the superintendent is home.
2 AM: 29 leaks, 14 of them major.
Unmonitored
6 hrs
Until someone notices in the morning
1,800 to 2,900 gallons from a concealed pipe
Monitored
Minutes
An alert in seconds and an operator on the line
The water stays in the unit it started in
Unmonitored times follow the hour: office hours 1 to 2 hours, evenings 3 to 5, overnight until the 8 AM walk-through. Gallons assume a concealed pipe at 5 to 8 gallons a minute.
The hourly figures
| Hour | All leaks | Major leaks |
|---|---|---|
| 12 AM | 25 | 3 |
| 1 AM | 17 | 2 |
| 2 AM | 29 | 14 |
| 3 AM | 21 | 9 |
| 4 AM | 15 | 1 |
| 5 AM | 25 | 3 |
| 6 AM | 12 | 1 |
| 7 AM | 11 | 2 |
| 8 AM | 14 | 0 |
| 9 AM | 19 | 2 |
| 10 AM | 28 | 3 |
| 11 AM | 15 | 1 |
| 12 PM | 35 | 3 |
| 1 PM | 32 | 6 |
| 2 PM | 46 | 3 |
| 3 PM | 20 | 0 |
| 4 PM | 30 | 0 |
| 5 PM | 23 | 1 |
| 6 PM | 28 | 0 |
| 7 PM | 18 | 1 |
| 8 PM | 24 | 0 |
| 9 PM | 16 | 1 |
| 10 PM | 24 | 7 |
| 11 PM | 19 | 3 |
A 2 AM leak, unmonitored
Unmonitored, a 2 AM leak runs until someone notices in the morning, and gravity takes it through the floors below.
- 2:10 AM. A washing machine hose bursts in a unit on the fifth floor. Nobody is home.
- The water spreads across the floor and finds the gaps around pipes, walls and the slab.
- It comes through the ceiling of the unit below, then the next one down.
- Morning. A resident downstairs finds a wet ceiling. Four units are wet.
The same leak, monitored
Monitored, the same leak stays in the unit it started in. The sensor alerts, a shutoff rule closes the unit’s valve and an operator calls your on-site team.
- A washing machine supply hose bursts in a unit upstairs.
- Eddy H2O under the washer detects water and sends the alert over LoRaWAN.
- The building's gateway relays it. Your team and the 24/7 monitoring center are alerted at the same time.
- A shutoff rule closes the unit's Eddy IQ valve. The water stops at the source.
- An operator confirms the alert and calls your on-site team through the escalation protocol.
Automatic shutoff is configured per building. Some sites use operator-coordinated isolation instead.
Automation first, then a person on the phone
Behind every alert is the 24/7 monitoring center. Automation acts first, then trained operators confirm the alert and work through your escalation list until someone has eyes on the water.
Three real events, as the monitoring center logged them
8:50 AM · Boiler room, mechanical penthouse
A leak in a room nobody visits
A sensor in the boiler room gets wet.
A small leak near the boilers, a puddle of water.
Concierge and maintenance already on it. Resolved on the same call.
Resolved in 17 minutes
10:12 AM · Laundry room, condo unit
A burst pipe sorted the same day
A sensor behind the washing machine gets wet.
A supply pipe let go. Flowing, not dripping.
Builder on site, leak sorted the same day, follow-up call set.
Call in 5 minutes
7:17 PM · Kitchen, condo unit, after hours
Shut down at night, dealt with in the morning
A sensor under the dishwasher gets wet.
A dishwasher line leaking under the cabinet, no maintenance until morning.
Valves shut the same evening, calls held overnight as the building asked.
Call in 6 minutes
Real events from monitored buildings with identifying details removed. Times are from the incident records.
Further reading: Ceiling leaks in apartments and condos
Next: what it costs, and what underwriters seeThe business case
What it costs, and what underwriters see
The bill for a leak and the renewal conversation that follows it are the same story told twice.
What a leak costs in a multi-family building
| Scenario | Damage range |
|---|---|
| Minor unit leak | $20K to $50K |
| Multi-unit event | $100K to $250K |
| Riser or HVAC failure | $250K to $400K plus |
From Eddy’s monitoring data, published in State of Water Risk ’26.
- 57%of processed commercial property claims are water damageZurich North America, via NAIOP
- 8%rise in interior water damage claim severity over four yearsVerisk
- $55K+average water claim in large urban multifamily buildings, before a cascade multiplies itInsurer estimate cited in State of Water Risk '26
“The question has shifted from what’s the exposure to what’s being done about it.”
Underwriters now ask for evidence of controls, and for building systems that are maintained and monitored. A documented water program answers both, and its results are documented too.
Documented results at monitored buildings
- 80%deductible reduction at a 119 unit condominium, from $250,000 to $50,000, within a year of monitoring
- 25%premium reduction at a 121 unit condominium, with no change to the deductible
- $200K+a year saved by a 75 unit New York condominium once called uninsurable after two water losses
Aon’s Real Estate Practice found the system would have positively affected 58% of the water loss claims it studied and reduced total losses by 23%.
Further reading: Managing risk and insurance costs
The full data, by building type, leak source, floor and hour, is in State of Water Risk ’26
Your building
Your building’s water risk profile
Three facts about one building. The page shows where it stands against the published averages, and the full profile comes as a PDF, ready to attach to a renewal submission.
Water risk profile
7 floors, 120 units, 15 to 30 years
- After hours
- 65%Of multi-family events start between 5 PM and 8 AM
- Floors in the cascade band
- 6 of 7Floors 2 to 10 carry 79% of major leaks
- A 2 AM leak, unmonitored
- 6 hrs1,800 to 2,900 gallons before the 8 AM walk-through
- Check first at this age
- Fan coilsDrain pans, condensate lines and supply lines near the end of their first life. Counted at 1.15 times the leak rate
- Leaks to expect a year
- In the PDF profileAnd how many start after hours
- Major leaks
- In the PDF profileThe ones with the most destructive potential, about 1 in 8 leaks
- Chance of a leak this year
- In the PDF profileAt least one, at the multi-family leak rate
- After-hours exposure
- In the PDF profileA year, the after-hours leaks from the average US water claim up to Eddy's $64,200 a leak
How the profile is built: leaks a year use the multi-family rate in Eddy’s data, 3.6 for every 100 units (534 leaks in a year across 148 buildings), below the 11% of households in US buildings of 5 or more units that report a leak inside each year. Older buildings step up 1.15 times at 15 to 30 years and 1.3 times past 30, under the gap the American Housing Survey shows between older and newer homes. The after-hours exposure takes 65% of those leaks, the share of multi-family events that start after hours, from $15,400 a leak, the average US homeowners water damage claim, up to $64,200, Eddy’s average estimate for a multi-family leak. The PDF sets out the full method and its sources.
Common questions
What causes most water damage in multifamily buildings?
Plumbing and fixture failures inside the building. Across the multi-family buildings Eddy monitors, pipes and risers start 33% of leaks and cost the most, at $111,600 a leak. HVAC equipment starts 17%, and washing machines, dishwashers and toilets account for most of the rest.
When do multi-family leaks happen?
Mostly when nobody is watching. 65% of multi-family water events start after hours, between 5 PM and 8 AM, and major leaks, the ones with the most destructive potential, peak at 2 AM. Without monitoring, a pipe leak at 2 AM can run 6 to 8 hours before anyone finds it.
Which floors of a multi-family building carry the most risk?
Floors 2 to 10 carry 79% of major leaks. They are high enough to have units below them, so a leak there comes down through the ceilings underneath until someone stops it.
Can water be shut off to one unit without shutting down the building?
Yes. An Eddy IQ on a unit's supply line can close that line on a rule you set, so only that unit loses water. Valves on the domestic main and on riser zones cover the leaks a unit valve can't reach. Shutoff rules are configured per building, and some sites use operator-coordinated isolation instead.
What happens when a sensor detects water at 2 AM?
The alert reaches your team and Eddy's 24/7 monitoring center in seconds. Automation acts first, closing a valve where a shutoff rule is set. Then an operator confirms the alert and works through your escalation list until someone has eyes on the water.
How does water monitoring affect property insurance?
Underwriters now ask for evidence that a building's water systems are maintained and monitored. A monitored building can show its controls and every event's record. Documented results include an 80% deductible reduction at a 119 unit condominium and a 25% premium reduction at a 121 unit condominium. Results vary by building and carrier.
Where does the data in this briefing come from?
From Eddy's monitoring data for multi-family buildings, published in State of Water Risk '26. The full report covers 2,557 confirmed water events across 200 plus monitored properties, each one verified by the Eddy monitoring center.
Water is the loss you can see coming. Most buildings just aren’t looking.
Eddy watches flow, moisture and temperature across the building, closes valves automatically or on command and backs every alert with a 24/7 monitoring center. Owners and managers who want to see what that looks like on their own buildings can start with a conversation.
Data: Eddy Solutions, State of Water Risk '26. 2,308 confirmed water events in 148 monitored multi-family buildings, within 2,557 events across 200 plus monitored properties, all verified by the Eddy monitoring center.
Also cited: IREM, What insurance underwriters want to see from property managers. Zurich North America via NAIOP on the share of property claims. Verisk on claim severity. Aon Real Estate Practice whitepaper on the effectiveness of water leak detection. US Census Bureau, American Housing Survey, on leaks by building size and age. Triple-I, from ISO data, on the average water damage claim. State Farm on what a burst washer hose releases.
Insurance results are documented client outcomes. Every building is different and results are not guaranteed.