Does Flood Insurance Protect Your Basement HVAC System

Basement

Here is what your Standard NFIP Flood policy may say about basement restrictions and HVAC coverage:

1. Basement Restrictions

The Standard Flood Insurance Policy (SFIP) limits what is covered in a basement (or any area below the lowest elevated floor). Coverage is only provided for specific building property items, such as:

• Central air conditioners

• Furnaces and hot water heaters

• Heat pumps

• Electrical boxes, switches, and outlets

• Fuel tanks and the fuel in them

• Sump pumps, well water tanks, and pumps

• Nonflammable insulation

• Drywall (unfinished, unfloated, not taped)

• Staircases attached to the building

• Required utility connections for these items

• Foundations and structural supports

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Personal property in basements is even more restricted. Only:

• Clothes washers and dryers

• Food freezers (other than walk-in) and the food in them

• Portable/window A/C unitsare covered if installed and connected.

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This means finished walls, flooring, furniture, and most other personal property in a basement are not covered.

2. HVAC Claim Limitation

The policy only pays for direct physical loss from flood. For systems like HVAC located in the basement:

• Coverage is limited to the unit or parts that were directly touched by floodwater.

• There is no coverage for replacing the entire system unless the entire system was directly damaged by the flood.

So if part of the HVAC system (e.g., furnace, heat pump) was in the basement and only certain components were submerged, the insurer will only pay for those components, not a full system replacement.

✅ Summary:

Yes, your policy has basement restrictions that significantly reduce coverage. In a basement, only a narrow list of building items (like furnace, hot water heater, sump pump, electrical panels) and a few personal property items (washer, dryer, freezer, portable A/C) are covered. Regarding the HVAC, the insurer is correct: the claim is limited to the flood-damaged parts of the system, not a full system replacement.

Flood Policy – Basement & HVAC Coverage Summary

• Basement Coverage is Limited:Flood insurance does not cover all property in a basement. Only certain building items and a few personal property items are covered.

• Covered Building Items in Basement (examples):

  • Furnace, hot water heater, and heat pump

  • Central air conditioner (indoor unit)

  • Electrical panels, switches, and outlets

  • Sump pump, well pump, and water tanks

  • Fuel tanks and the fuel inside

  • Unfinished drywall (not taped or painted)

  • Nonflammable insulation

  • Foundations and structural supports

• Covered Personal Property in Basement (if installed/connected):

  • Clothes washer and dryer

  • Food freezer (not walk-in) and the food inside

  • Portable or window-type air conditioning unit

• What’s Not Covered in a Basement:

  • Finished walls, paneling, or flooring

  • Carpets, furniture, electronics, and most personal property

  • Replacement of the full HVAC system if only part was damaged

• HVAC Claim Limitation:

  • Only the parts of the HVAC system directly touched by floodwater are covered.

  • The policy does not pay to replace the entire system unless the whole system was damaged by the flood.

*The content contained in this blog is for informational purposes only. It should not be considered insurance advice since every client's needs and circumstances are different.. Bergen Insurance Group, LLC makes no representation as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All statements represent the sole opinion of the author and is provided on an as-is basis. For an actual description of all coverages, terms and conditions, refer to your insurance policy.