If Debby causes damage to your basement, flood insurance may not cover it.

• Flood insurance generally doesn't cover items stored in basements, however.

The southeastern U.S. experienced heavy rains and flash floods from Hurricane Debby this week. Despite Debby's weakening to a post-tropical storm, it poses a threat to inundate the Mid-Atlantic and Northeast as it moves up the coastline Friday and into the weekend.

Homeowners may have purchased flood insurance for such an eventuality.

It may come as a shock to policyholders that flood insurance typically does not cover damage to personal belongings and items kept in basements.

Consumers are increasingly taking advantage of clean energy tax credits. Higher home cooling costs are being driven by extreme heat. Housing affordability is showing positive progress.

Peter Kochenburger, an insurance expert and visiting law professor at Southern University Law Center, previously advised CNBC that while you can put anything you want in your basement, it won't be insured for floods.

Insurance contracts may have a broader definition of a basement, which could include sunken living rooms or areas partially below ground level.

As climate change intensifies, experts predict that the consequences of insurance quirks related to storms and flood damage will also increase.

You need a separate insurance policy for floods

A small amount of water can lead to significant property damage, according to the agency.

Homeowners and renters insurance policies do not cover flood damage, however.

To protect against physical damage caused by floods, which can occur due to storm surge, heavy rainfall, or an overflowed body of water, consumers must purchase separate insurance.

Experts stated that the majority of individuals with flood insurance obtain it through the federal government, specifically through FEMA's National Flood Insurance Program.

At the end of 2023, approximately 4.4 million Americans had residential NFIP policies, totaling $1.2 trillion in coverage, according to FEMA.

Although many homeowners lack coverage, only about 30% of U.S. homes in high-risk flood areas have flood insurance, according to the University of Pennsylvania's Wharton Risk Center.

According to FEMA data, nearly 21,000 policyholders filed a claim in 2023, with an average payment of almost $46,000.

In 2019, the average annual flood insurance premium was $700, according to FEMA.

According to the Insurance Information Institute, private insurers provide flood policies and may offer more comprehensive coverage than FEMA's policies.

What items aren't covered in a basement?

Basements in America are often a mix of personal belongings, used as storage areas, man caves, game rooms, wine cellars, home bars, and additional living spaces.

But basement coverage "is limited" through NFIP policies, FEMA said.

The building's lower level is referred to as a "basement" by the agency, regardless of its location.

Basements can include rooms that are not entirely underground, such as sunken living rooms, crawlspaces, and lower levels of split-level buildings, according to the agency.

Its flood policies exclude the following items from coverage in a basement:

• "Personal property" like couches, computers, or televisions
• Improvements to basements, including finished flooring, walls, bathroom fixtures, and built-ins.
• Generators (and similar items)
• Certain dehumidifiers

FEMA stated that items stored in a basement, which are not connected to a power source, are not covered.

Kochenburger advised consumers worried about flood risk and insurance coverage to move their belongings from a basement to a storage unit or higher ground.

These basement items are included, with an add-on

FEMA stated that only if NFIP policyholders purchase additional "contents coverage," which is optional, and if connected to a power source, the following basement items are covered.

• Clothes washers and dryers
• Air conditioners (portable or window units)
• Food freezers and the food in them (excluding walk-in freezers)

According to Don Griffin, vice president of policy and research at the American Property Casualty Insurance Association, private insurance policies may provide broader coverage for basements, but this can vary among insurers.

A positive aspect to this situation is that there is a decrease in the number of U.S. homes being constructed with basements.

FEMA unveiled a plan to revise its NFIP program and possibly improve basement insurance coverage for clients on February 6th.

Under the current Dwelling Form, policyholders with basements are surprised to learn that their coverage is limited.

What basement items are covered by flood insurance?

According to Kochenburger, the main concern of flood insurance is the building itself.

FEMA stated that NFIP policies protect basements and structures within them.

• Central air conditioners
• Fuel tanks and the fuel in them
• Furnaces and water heaters
• Sump pumps, heat pumps, and well water tanks and pumps
• Electrical outlets and switches
• Elevators and dumbwaiters
• Certain drywall
• Electrical junction and circuit breaker boxes
• Stairways and staircases attached to the building
• Foundation elements and anchorage systems required to support a building

FEMA announced that policyholders may be eligible for compensation to cover expenses related to floodwater removal, mold and mildew treatment, and interior foundation drying.

It is advised by the agency to record the manufacturer, model, serial number, and capacity of equipment in your basement, including furnaces, central AC units, and appliances such as freezers, washers, and dryers.

During the claims process for flooding, the NFIP requires this information, according to FEMA.

According to FEMA, policyholders should review their flood insurance policy for a detailed list of covered items and expenses.