What is the problem with Illegal apartments?

[Patrick Reagan]

I've noticed many three family homes have a fourth apartment in the basement and it's considered "illegal", yet many have tenants.What are the problems with having such apartments and what's the worse case scenario for having them? Thank you

[Nathan Gesner]

It could lead to fines. It could lead to death if you don't have legal egress windows for people to get out in case of an emergency. If your insurance company finds out about it, they could cancel your policy and refuse to cover a claim, even if it's a valid one.