Sometimes, loyalty pays off. But with insurance, that loyalty can feel misplaced when insurers fail to deliver at critical moments.
Jaime Giangrande-Holcom and her husband had paid faithfully for flood insurance for 12 years. However, last month, when Hurricane Helene left their home in Town N’ Country home near Tampa flooded, they hit a snag.
The insurance adjuster informed them that the 3.5-inch step down into their sunken living room classifies it as a “basement” under their policy — meaning it isn’t eligible for flood coverage.
“It’s ridiculous,” Giangrande-Holcom told WFLA reporters. “To even come out and say the word basement in the state of Florida is comical. I grew up in New York, and I know what a basement looks like. I lived in basements. This is not a basement.”
This denial highlights how a small technicality can impact coverage — even for long-term paying customers. Here’s how such exclusions are possible and why homeowners should be aware.
Giangrande-Holcom and her husband have a flood insurance policy through the National Flood Insurance Program (NFIP), administered by FEMA. This year, they paid $3,800 for coverage, and up to now, they hadn’t filed a claim.
NFIP policies offer two types of coverage: building coverage and contents coverage. Building coverage protects your home’s structure and systems, including electric and plumbing, kitchen appliances, carpeting, cabinets, walls, staircases, water wells and solar equipment. Contents coverage protects personal items, such as a washer and dryer, a microwave and valuables like artwork (up to $2,500).
However, NFIP policies don’t cover personal property in basements. Their website defines a basement as any part of a building, including a sunken room or sunken portion of a room, with its floor below ground level (subgrade) on all sides.
This definition offers Giangrande-Holcom some hope. She pointed out that there is a 4.5-inch rise at her home’s entrance and only a 3.5-inch drop into the sunken living room. She has appealed the insurer’s decision, hoping these measurements will prove her living room isn’t a basement.
Still, the couple is worried that others in their community could face similar issues. Giangrande-Holcom mentioned that several families nearby are facing similar challenges.
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If your home has any sunken areas, your insurance may consider it a basement for coverage purposes. This classification could also come up if you sell the home, as real estate agents might list it as a basement, which can impact the appraised value.
According to ANSI (American National Standards Institute) — a standard many real estate professionals use to measure a home’s square footage — any living space below grade on all sides is considered a basement. ANSI’s website notes that its standards are voluntary and simply provide “an agreed-upon formula for the best way of doing something.”
For homeowners with flood insurance, it’s essential to know what their policy actually covers — and in most cases, that does not include any part of the home that’s below ground level in any way.
“It is crucial for homeowners to understand what their policy does and does not cover when purchasing flood insurance to avoid out-of-pocket expenses,” A spokesperson for FEMA told NewsNation affiliate WFLA. “Online resources exist to help policyholders understand coverage decisions and how to appeal a decision.”
When flood risks are high, especially during hurricane season, homeowners should consider moving any personal items from areas that might be classified as a basement.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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