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Updated almost 3 years ago on . Most recent reply

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Chris P.
Pro Member
5
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12
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Basement ADU in Flood Zone

Chris P.
Pro Member
Posted

I'm looking at purchasing a Duplex and turning the basement into a 1-2 bedroom, 1 bath unit. It already has a kitchen area and bathroom built out, but unfortunately it never passed coding for a legal 3rd unit. (I think this was mostly due to egress and possibly being in a flood zone) Does anyone have any experience with turning a basement into an ADU? What kind of costs am I looking at for adding an egress window and water proofing the basement? Are there any other things I should know or be worried about before taking this on. Thanks!

  • Chris P.
  • Most Popular Reply

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    110
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    Robert Murphy
    • Flood Nerd, FL
    59
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    110
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    Robert Murphy
    • Flood Nerd, FL
    Replied

    Hi @Chris P. how exciting on your potential purchase. If the property is in a high-risk flood zone (one that will require flood insurance) and it has a basement that isn't passing coding I am guessing it is because in the flood zones lenders will require coverage. Our federal government doesn't want us to put living areas in the basement. That being said some things to consider. 1) there is very limited coverage for flooding in any subgrade area on a structure. 

    As for you flood insurance options you only have really two categories the government called the NFIP or FEMA and the private flood insurance market.

    Below is the list of things the NFIP or government option will cover in a basement or any subgrade foundation again it is limited to only these things. 

    The following items are covered under building coverage as long as they are connected to a power source and/or installed in their functioning location:

    • Sump pumps
    • Well water tanks and pumps, cisterns and the water in them
    • Oil tanks and the oil in them, natural gas tanks and the gas in them
    • Pumps and/or tanks used in conjunction with solar energy
    • Furnaces, hot water heaters, air conditioners and heat pumps
    • Electrical junction and circuit breaker boxes and required utility connections
    • Foundation elements
    • Stairways, staircases, elevators and dumbwaiters
    • Unpainted dry wall and ceilings, including fiberglass insulation
    • Cleanup

    The following items are covered under contents coverage:

    • Clothes washers and dryers
    • Food freezers and the food in them
    • Flood insurance does not cover basement improvements or items not necessary to make the home safe, sanitary and functional -- such as carpeting, finished walls, paint, floors, ceilings, furniture or personal belongings that may be kept in the basement. Necessary items are included under building coverage and some under contents coverage. The NFIP encourages people to purchase both building and contents coverage for the broadest protection.

      The private flood policies are very similar however a few just simply say they will cover up to $15,000 or $20,000 so with my math it is kinda the same coverage with the NFIP and a finished living area will likely cost more to replace if you take that into consideration and build in a way that you can mitigate loss as much as possible then it might make sense as a flood insurance agent I would have to suggest to you that you do not finish anything subgrade unless you are taking on the risk of insuring whatever is not covered. 

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